De Beers posts FY loss, sales down 3% (Source: Mining Weekly)

By: Matthew Hill
Published: 8 Feb 2008 - 10:36

World number-one diamond producer De Beers on Friday reported a $521-million loss for 2007, after it suffered $965-million of impairment costs at its Canadian operations - mainly because of strengthening of this currency against the US dollar, and higher fuel and equipment costs.

This was compared with an attributable after-tax income of $394-million. In 2006, De Beers made a $730-million profit.

Underlying earnings increased by 14% to $483-million, while earnings before interest, taxation, depreciation and amortisation for 2007 stood at $1,21-billion, which was marginally less than the previous year's figure of $1,23-billion.

This was largely owing to lower diamond sales, which were down 3% year on year.