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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.
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Tags:
Argyle, Avi Krawitz, diamonds, Diavik, Murowa, Rapaport, Rio Tinto
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