Jim Letourneau's Blog

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Aber is Able

Here are the highlights from Aber Resources' recent earnings report.

  • earnings per share of 92 cents and cash earnings per share of $2.96;
  • rough diamond sales revenue increased by $157-million over the prior year;
    diamond production doubled over the prior year to three million carats, being Aber's share;
  • credit facility refinanced from project loan to a combined secured term loan and revolving credit facility;
  • acquired a 51-per-cent controlling interest in Harry Winston Inc.; and
  • dividend policy implemented and share repurchase plan approved.

    Robert Gannicott, Aber's chairman and chief executive officer, commented: "The past year has seen Aber achieve definitive goals on its path to become the world's premier publicly traded diamond company. We completed the purchase of a controlling interest in Harry Winston and we have begun to capture the synergy of linking the two most profitable bookends of the diamond industry. The Diavik mine continues to outperform design capacity and Harry Winston has exceeded our early expectations with sales of both diamonds and jewellery supported by a robust diamond market."

    Technical analysis indicates that the $40 level is an important support level. We'll see if some buyers start showing up after all of this nice sounding news.

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