Aber Diamond (MM) (NASDAQ:ABER)
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From Jun 2019 to Jun 2024
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