Aber Turns A Profit As Diavik Starts To Roll

Aber Diamonds, 40 percent owner of Canada’s Diavik mine, reports quarterly net earnings of U.S.$5.63 million compared with a loss of $1.1 million during the same period last year. The company’s share of rough from Diavik was 156,708 carats, which it received from the initial diamond delivery from Diavik in January. During the quarter the company sold 42,619 carats of rough diamonds at an average price of $96.2 per carat, netting $4.1 million. Rio Tinto, Aber’s partner at Diavik and the mine operator, estimates the mine will produce 3.7 million carats before the end of the year, of which Aber will receive 1.5 million carats. Aber expects to receive 1 million carats by the end of November and sell them in January 2004. Part of Aber’s share is sold to Tiffany under a $50 million agreement. Tiffany reported last month that it bought from Aber $1 million worth of rough and expects to have the polished stones set and in stores by the autumn.