TORONTO (miningweekly.com) – Harry Winston Diamond Corp recorded a consolidated net loss of $0,2-million for the three months ended October 31, compared with a $71,9-million profit a year earlier.

Results were negatively affected by a planned shutdown at the Diavik diamond mine, in which Harry Winston and Kinross Gold owns 40% and diversified miner Rio Tinto holds the balance, the firm said.

The mine, in Canada's Northwest Territories, was closed for six weeks during the summer because of weak demand, which meant that the company only held one rough diamond sale during the quarter, compared with three in the same period last year.

However, a planned winter shutdown has since been cancelled because of improvements in the diamond market.

"We are very pleased to see a solid reversal in the negative trends that have characterised the previous quarters,” Harry Winston CEO Robert Gannicott said in a statement.

“Diavik production is set to increase, rough diamond prices continue to rise, and retail sales have seen substantial improvement, led by the Far East, including Japan,” he said.

“If US recovery takes hold it will inevitably produce incremental demand for diamond products".

The group, which also sells high-value jewellery and watches under the Harry Winston brand, reported consolidated sales of $74,8-million for the quarter, compared with $148,6-million a year earlier.

The mining segment recorded sales of $20,8-million, a 77% decrease from $90,7-million in the third quarter of last year.

The weaker sales were a result of a 75% drop in the volume of carats sold, plus a 9% decrease in rough diamond prices, Harry Winston said.

The retail segment recorded a 7% year-on-year decrease in sales, to $54-million.

Rio Tinto is the operator of the Diavik mine, but Harry Winston markets its own share of rough diamond production from the operation.

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