Aber Q3 Sales $145.2 Million, Net Earnings $18.8 Million

Aber Diamond, 40 percent stakeholder of the Diavik diamond mine and owner of retailer Harry Winston, reported a drop in net earnings in the last quarter. During the quarter, the company held only two rough diamond sales as opposed to three in the third quarter of 2005, and it took full ownership of Harry Winston.

Diamond production at Diavik has increased during the quarter, with Aber’s share reaching 1,132,000 carats, compared to 871,000 last year. However, the revenues were impacted not just by the number of sales, but also by size of the mined goods.

Revenue from rough diamond sales was 19 percent lower, $90.8 million generating earnings of $40.6 million for the current quarter.

Harry Winston sales have increased 32 percent to $54.4 million, but generated a 3.5 million in losses, principally resulting from the acquisition of the remaining ownership of Harry Winston.

Aber's chairman and CEO Robert Gannicott said Diavik diamond production exceeded previous highs. The mine’s next phase of development, underground production, has been approved. “We look forward to a future where multiple working faces at the Diavik Mine provide both security and a smoother annual production profile”.

Thomas O'Neill, president of Aber and CEO of Harry Winston added, “We had strong sales in the existing store network in the US, our new stores are performing better than expected, and we have seen strong demand in timepieces. We are pleased that we were able to accelerate the purchase of the minority interest and look forward to realizing the full benefit of a successful growth strategy.”