News, views and contacts from the global Mining industry
 

Harry Winston reports increased net earnings for Q3

10 December 2012

Harry Winston diamond mine, Canada

Canada-based diamond supplier Harry Winston Diamond Corporation has reported an increase in its third quarter net revenue.

Consolidated net profit attributable to shareholders for the third quarter was $3.4 million, or $0.04 per share, compared to net loss attributable to shareholders of $4.7 million in the comparable quarter of the last fiscal period.

Operating profit was reported at $10.3m for the quarter compared to a loss of $2m for the same period in 2011.

Sales during the reporting period were $180.4m, an increase of 51% from the $119.7m generated for the same quarter last year, while EBITDA rose by 64% to $34.8m.

Production of rough diamonds for the quarter ending 30 September 2012 was 0.77 million carats (40% basis), comparable to the same period last year.

The company reported a significant increase in rough diamond sales with earnings of $84.8m, more than 134% compared to $36.2m worth of sales in the same quarter in 2011.

The increase in sales was attributed to a 286% raise in carats volume during the period.

Harry Winston chairman and chief executive officer Robert Gannicott said that this quarter, the company demonstrated considerable progress "on many fronts".

"Our luxury brand business has demonstrated strong growth in its bridal jewellery sales, with the higher margins and broader base that this implies, while the Diavik Project has successfully switched fully to underground ore production," Gannicott said.

"The rough diamond market has recovered its poise as optimism returns in America, still the world's largest consumer of diamond jewellery."

For the full financial year, Harry Winston expects to produce 7.1 million carats from the Diavik Diamond Mine. But this target is a drop from its earlier production goal of 8 million carats.

The company owns 40% of the Diavik diamond mine while Rio Tinto Plc (RIO.L) owns the rest of the mine and is responsible for operations.


Image: The Diavik Diamond mine in Northwest Canada. Photo: Trevor MacInnis.