/FIRST AND FINAL ADD - TO259 - Aber Diamond Corporation/
06 Giugno 2007 - 6:17AM
PR Newswire (US)
Only non-executive directors of the Company are eligible for grants
under the DSU Plan. Each DSU grant vests immediately on the grant
date. The expenses related to the RSUs and DSUs are accrued based
on the price of Aber's common shares at the end of the period and
on the probability of vesting. This expense is recognized on a
straight-line basis over the term of the grant. NOTE 8: Commitments
and Guarantees (a) Environmental Agreement Through negotiations of
environmental and other agreements, the Joint Venture must provide
funding for the Environmental Monitoring Advisory Board. Aber's
share of this funding requirement was $0.2 million for calendar
2007. Further funding will be required in future years; however,
specific amounts have not yet been determined. These agreements
also state the Joint Venture must provide security deposits for the
performance by the Joint Venture of its reclamation and abandonment
obligations under all environmental laws and regulations. Aber's
share of the Joint Venture's letters of credit outstanding with
respect to the environmental agreements as at April 30, 2007 was
$52.5 million. The agreement specifically provides that these
funding requirements will be reduced by amounts incurred by the
Joint Venture on reclamation and abandonment activities. (b)
Participation Agreements The Joint Venture has signed participation
agreements with various native groups. These agreements are
expected to contribute to the social, economic and cultural
well-being of the Aboriginal bands. The agreements are each for an
initial term of twelve years and shall be automatically renewed on
terms to be agreed for successive periods of six years thereafter
until termination. The agreements terminate in the event the mine
permanently ceases to operate. (c) Commitments Commitments include
the cumulative maximum funding commitments secured by letters of
credit of the Joint Venture's environmental and participation
agreements at Aber's 40% share, before any reduction of future
reclamation activities, and future minimum annual rentals under
non-cancellable operating and capital leases for retail salons and
corporate office space, and are as follows: 2008 $ 68,284 2009
80,551 2010 81,743 2011 79,963 2012 77,755 Thereafter 132,897
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NOTE 9: Employee Benefit Plans Three Months Three Months Ended
Ended April 30, April 30, Expenses for the period: 2007 2006
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Defined benefit pension plan at Harry Winston $ 6 $ 30 Defined
contribution plan at Harry Winston 210 90 Defined contribution plan
at the Diavik Mine 163 178
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$ 379 $ 298
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NOTE 10: Related Parties Transactions with related parties for the
three months ended April 30, 2007 include $0.4 million ($0.4
million for the three months ended April 30, 2006) of rent relating
to the New York salon, payable to a Harry Winston employee. NOTE
11: Subsequent Event On May 31, 2007, Aber amended its existing
credit facility to extend the maturity date to December 15, 2009
from December 15, 2008. The schedule of required principal
repayments has been adjusted to reflect the new maturity date. NOTE
12: Segmented Information The Company operates in two segments
within the diamond industry, mining and retail, for the three
months ended April 30, 2007. The mining segment consists of the
Company's rough diamond business. This business includes the 40%
interest in the Diavik group of mineral claims and the sale of
rough diamonds in the market-place. The retail segment consists of
the Company's ownership in Harry Winston. This segment consists of
the marketing of fine jewelry and watches on a worldwide basis. For
the three months ended April 30, 2007 Mining Retail Total
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Revenue Canada $ 82,752 $ - $ 82,752 United States - 24,341 24,341
Europe - 22,347 22,347 Asia - 11,925 11,925 Cost of sales 40,516
30,616 71,132
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42,236 27,997 70,233 Selling, general and administrative expenses
5,087 29,124 34,211
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Earnings (loss) from operations 37,149 (1,127) 36,022
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Interest and financing expenses (3,675) (2,457) (6,132) Other
income 766 147 913 Foreign exchange gain (loss) (13,311) 19
(13,292)
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Segmented earnings (loss) before income taxes $ 20,929 $ (3,418) $
17,511
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Segmented assets as at April 30, 2007 Canada $ 735,349 $ - $
735,349 United States - 464,003 464,003 Other foreign countries
5,542 110,459 116,001
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$ 740,891 $ 574,462 $ 1,315,353
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Goodwill as at April 30, 2007 $ - $ 97,207 $ 97,207 Capital
expenditures $ 29,010 $ 8,556 $ 37,566 Other significant non-cash
items: Income tax recovery $ (2,683) $ (639) $ (3,322)
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For the three months ended April 30, 2006 Mining Retail Total
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Revenue Canada $ 69,308 $ - $ 69,308 United States - 21,148 21,148
Europe - 16,459 16,459 Asia - 12,356 12,356 Cost of sales 38,749
25,096 63,845
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30,559 24,867 55,426 Selling, general and administrative expenses
4,787 22,508 27,295
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Earnings from operations 25,772 2,359 28,131
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Interest and financing expenses (2,797) (1,537) (4,334) Other
income 1,602 21 1,623 Foreign exchange gain (loss) (2,247) 141
(2,106)
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Segmented earnings before income taxes $ 22,330 $ 984 $ 23,314
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Segmented assets as at April 30, 2006 Canada $ 755,561 $ - $
755,561 United States - 271,878 271,878 Other foreign countries
18,727 64,544 83,271
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$ 774,288 $ 336,422 $ 1,110,710
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Goodwill as at April 30, 2006 $ - $ 41,966 $ 41,966 Capital
expenditures $ 19,458 $ 2,686 $ 22,144 Other significant non-cash
items: Income tax recovery $ (3,835) $ (103) $ (3,938)
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Sales to one customer in the mining segment totalled $4.6 million
for the three months ended April 30, 2007 ($5.7 million for the
three months ended April 30, 2006). DATASOURCE: Aber Diamond
Corporation CONTACT: PRNewswire - - 06/05/2007
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