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Rio Tinto's 1H Diamond Revenue +12%

Aug 8, 2012 3:15 AM   By Avi Krawitz
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RAPAPORT... Rio Tinto reported revenue from its diamond business rose 12 percent year on ‎year to $350 million during the first six months of 2012. Revenue growth was driven by ‎higher production, while rough demand experienced a modest slowdown during the period, the company explained. ‎

Rio Tinto recorded a net loss of $38 million from its diamond operations, compared with a ‎loss of $10 million in the previous year. Earnings before interest, tax, depreciation and amortization (EBITDA) ‎fell 30 percent to $35 million.  ‎

In July, the mining group reported that production for the first half of 2012 rose 18 percent ‎to 6.167 million carats across its three diamond mines. Rio Tinto owns the Argyle mine in ‎Australia, a 60 percent stake in the Diavik mine in Canada and a 78 percent share in the ‎Murowa mine in Zimbabwe. The company did not provide an update regarding its ‎intention to sell its diamond assets.‎

Despite its plans to divest, Rio Tinto’s capital expenditure on its diamond assets rose 69 ‎percent to $273 million during the half year  as it continues  construction of its underground mine ‎at Argyle.   ‎

Rio Tinto Group’s consolidated sales revenue fell 13 percent to $25.33 billion during the quarter, while net ‎earnings declined 22 percent to $5.86 billion.‎
Tags: Argyle, Avi Krawitz, diamonds, Diavik, Murowa, Rapaport, Rio Tinto
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