Tahera Records YTD Operating Loss of $49 Million

Tahera Diamond Corporation announced year-to-date revenues of CAD$20.66 million (US$22.26 million) and an operating loss of $45.47 million ($49.01 million) for the December 31, 2006 to September 30, 2007 period. In this period, the company recorded a net loss of $143.117 million ($154.35 million), as compared to a net loss of $8.218 million ($8.86 million) for the same period of 2006.

The miner recorded a $73 million ($78.7 million) “asset impairment charge against the carrying value” of the Jericho diamond mine at September 30. Tahera management determined, due to a number of factors, including the recent appreciation of the Canadian dollar against the U.S. dollar, the rise in oil prices, modest diamond price increases and ongoing operational and production issues, to conduct a valuation of the mine.

Third quarter production totaled 99,300 carats, with an average grade of 0.78 carats per ton.

The value of production in the third quarter totaled US$8.4 million, while operating costs were $17.9 million.

In October, the company realized the highest monthly total output from the Jericho mine – 47,000 carats.

The company notes that, as its financial position has deteriorated, Tiffany & Co. has agreed to defer scheduled debt repayments, totaling approximately $12.5 million and has indicated that it is prepared to convert these repayments into equity.