Harry Winston Diamond Corporation announced a 62% jump in revenue compared to the same quarter last year. The second quarter resulted in generation of $153.7 million from sales this year as compared to merely $98.8 million in the same quarter last year.
The Canadian diamond company has had a better than expected run in the second quarter, with a recovery of the international diamond business.
The jump in sales has prompted USB Investment Research analyst Brian MacArthur to upgrade Harry Winston from “neutral” to “buy” for investors. The increased sales revenue came from three rough diamond sales deals in the second quarter. The stable demand for rough diamonds from Diavik helped boost the sales. Even the retail operations of the company posted positive earnings.
The company is studying a different underground mining method which has the potential to reduce the costs of operations at the Diavik diamond mine. The mine is owned 40% by Harry Winston Diamond Corporation and 60% by Rio Tinto.
Diavik had begun as an open pit mine in 2003 but started underground production in March 2010. The mine will transition towards becoming a completely underground mine over the next year or so.
The mine operators will also look at using new mining technique that feature lower costs and increased mining speeds. This new technique may allow them to explore recently discovered regions where mineralised kimberlite reserves have been identified.