BHP H1 Diamond Sales Decline 4.8%
February 05, 09
BHP Billiton mined 1.367 million carats in the second half of 2008, generating $218 million revenues, according to an interim results supplementary published Wednesday. Compared to the July - December period of 2007, production and revenues declined 26.7 percent and 4.8 percent respectively.
The $159.47 per carat average value of sales reflects two very different economic situations in the market - the high speculative prices in the summer time and the low prices in October - December.
In a tender BHP held in late October, prices were 35-45 percent below September prices, according to buyers. Since that time prices fell even further.
BHP’s Diamond earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $94 million from $60 million the year before, while earnings before interest and taxes (EBIT) rose from $14 million to $15 million in the six month period.
It stated the diamond net operating assets at $1.247 billion.