Aber Second-Quarter Net Rises 80% on Diamond Output

Aber Diamond Corp., a partner in the Diavik mine in Canada's Northwest Territories, said fiscal second-quarter profit rose 80 percent to a record on increased diamond production and a tax gain.

Net income rose to $34.3 million, or 58 cents a share, in the three months ended July 31, from $19 million, or 32 cents, a year earlier, Toronto-based Aber said today in a statement. Sales rose to $140 million from $115.7 million.

``Record diamond production this quarter has resulted from a combination of process plant enhancements and the mining of relatively higher grade portions of the ore reserve,'' Chief Executive Officer Robert Gannicott said in the statement.

Aber's 40 percent share of Diavik's diamond production rose to 1.088 million carats in the quarter, up from 1.006 million a year earlier, the company said.

Second-quarter net income included a future tax recovery of $6.6 million, the company said.

Shares of Aber rose 59 cents, or 1.5 percent, to C$40.61 at 4:13 p.m. on the Toronto Stock Exchange. The stock has dropped 2.3 percent in the past year.

Aber owns about 53 percent of Harry Winston Inc., a diamond retailer.

To contact the reporter on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

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