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Positive results for Aber

Thorunn Howatt
Northern News Services

Yellowknife (July 04/01) - In a year where Aber Diamond Corporation's share price plummeted to $7.50 per share and ended up recently at $17, the company released lots of good news in its first quarter project update.

Now that the winter road program is completed, Aber Diamond Corporation presented record transportation results in its first quarter interim report to shareholders, filed last week.

Diavik, Echo Bay Mines, BHP and De Beers shipped 7,800 truckloads of supplies and equipment along the ice road.

Yellowknife's Aber holds a 40 per cent interest in the Diavik Diamonds Project along with Diavik Diamond Mines, who own 60 per cent.

In a prepared release Aber described the Diavik project as advanced from the original feasibility program, moving the production target date up to April 2003 but added Aber is currently arranging the remainder of its financing requirements for the project.

Aber's sale of its Snap Lake project to De Beers Canada Mining Company is the main influence on Aber's quarterly financial results ending April 31, 2001.

Aber's net earnings for the period total $85.3 million and include the $173 million sale of Snap Lake.

Short-term investments brought in $3.1 million, a 27 per cent increase from $2.5 million in the same period last year.

Increased staffing contributed to higher administrative expenses for the quarter ending April 30, 2001, at $1.5 million compared to $1.1 million in the same time period last year.

Aber posted a tax provision of $64 million, compared to $600,000 in last year's corresponding period.

Working capital increased to $203.5 million from $106.8 million at Jan. 31, 2001, again due to the Snap Lake deal.

Aber's share of Diavik's accounts payable and liabilities increased to over $60 million during the three-month time period due to the ice road's construction.