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Rio Tinto Diamond Sales Lag Behind Market
Feb 8, 2017 10:53 AM
By Rapaport News
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RAPAPORT... Rio Tinto’s diamond revenue slid 12 percent last year even
as global rough demand strengthened.
Sales of diamonds dropped to $613 million, the company
reported. Earnings before interest, tax, depreciation and
amortization (EBITDA) fell 18 percent to $239 million, while net income plummeted
41 percent to $47 million.
The decline is at odds with the increase in sales seen at
other comparable miners, with De Beers
rough-diamond revenue jumping an estimated 36 percent in 2016, according to Rapaport
News calculations. ALROSA said sales advanced 26 percent.
Rio Tinto owns the Argyle mine in Australia, known for its
production of rare fancy pink diamonds and a high volume of lower-quality rough.
It also has a 60 percent stake in the Diavik mine in Canada in partnership with
Dominion Diamond Corporation.
“Overall demand for rough diamonds recovered in 2016 from a
cyclical downturn in the previous year, varying significantly across product
segments,” the miner noted.
Rough-diamond output grew 4 percent to 18 million carats last year. The company forecast
production will rise to between 19 million and 24 million carats in 2017.
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Tags:
Argyle, Australia, Canada, Diavik, Dominion Diamond Corporation, Production, Rapaport News, Rio Tinto, Rough Diamonds, sales
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