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BHP's 1H Diamond Revenue -44%
Former Rio Tinto Diamond Chief Joins as Group CEO
Feb 20, 2013 1:37 AM
By Avi Krawitz
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RAPAPORT... BHP Billiton reported that revenue from its diamond operations fell 44 percent year on year to $199 million in the six months that ended on December 31, 2012. Underlying earnings before interest and tax fell to a deficit of $37 million compared with a profit of $120 million a year earlier. BHP Billiton noted that lower production at the Ekati mine was the major contributing factor to the decline.
The group’s diamond production, comprised of its 80 percent stake in Ekati, fell 35 percent to 608,000 carats during the period. BHP Billiton recently agreed to sell its interest in Ekati to Harry Winston Diamond Corporation for $500 million. The transaction is expected to close in the first half of calendar year 2013.
Net operating assets of the diamond division were valued at $487 million on December 31, down from $815 million a year earlier.
BHP Billiton’s group revenue fell 14 percent to $32.2 billion during the first half, while profit attributable to shareholders declined 58 percent to $4.24 billion.
The company announced that its CEO, Marius Kloppers, will step down from his position on May 10 and will be replaced by Neil Mackenzie, the former head of Rio Tinto’s diamond and minerals division. Mackenzie joined BHP Billiton in 2007 and is currently heading the group’s non-ferrous metals unit.
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Tags:
Avi Krawitz, BHP Billiton, diamonds, ekati, Harry Winston, Marius Kloppers, Neil Mackenzie, Rapaport
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