Business
Harry Winston Diamond Corporation Announces Third Quarter Fiscal 2010 Results
Harry Winston Diamond Corporation Announces Third Quarter Fiscal 2010 Results
About this update from Kinross Gold Corporation
[{"type":"text","content":"\n\n\n\nDec. 9, 2009 (Canada NewsWire Group) -- TORONTO, Dec. 9 /CNW/ -- Harry Winston Diamond Corporation (TSX: HW, NYSE: HWD) (the \"Company\") today reported third quarter results for the period ended October 31, 2009. Results were impacted by the planned temporary closure of the Diavik Diamond Mine leading to only a single diamond sale in the quarter. The Company recorded a consolidated net loss of $0.2 million or $nil per share for the third quarter, compared to net earnings of $71.9 million or $1.17 per share in the third quarter of the prior year and compared to a net loss of $24.5 million or $0.32 per share in the second quarter of the current year. Included in consolidated net earnings for the prior year was a net foreign exchange gain of $49.0 million or $0.80 per share primarily on future income tax liabilities compared to a net foreign exchange gain of $1.6 million or $0.02 per share in the current quarter.Robert Gannicott, Chairman and Chief Executive Officer commented: \"We are very pleased to see a solid reversal in the negative trends that have characterized the previous quarters. Diavik production is set to increase, rough diamond prices continue to rise, and retail sales have seen substantial improvement, led by the Far East, including Japan. If US recovery takes hold it will inevitably produce incremental demand for diamond products\".Consolidated sales were $74.8 million for the quarter compared to $148.6 million for the comparable quarter of the prior year, resulting in a 62% decrease in gross margin and a loss from operations of $4.9 million.The mining segment recorded sales of $20.8 million, a 77% decrease from $90.7 million in the comparable quarter of the prior year. The decrease in sales resulted from a combination of a 75% decrease in volume of carats sold in the third quarter and a 9% decrease in rough diamond prices. Rough diamond production for the calendar quarter was 0.3 million carats compared to 0.9 million carats in the comparable calendar quarter of the prior year. The decrease in production was due to the planned six-week shutdown from July 14, 2009 to August 24, 2009. The Company held one rough diamond sale in the third quarter compared to three in the comparable quarter of the prior year. Loss from operations for the quarter was $4.5 million compared to earnings from operations of $47.0 mil...