Editor’s Note
This article details BHP Billiton’s reported decline in diamond production and revenue for the second half of 2008, based on interim results.
According to an interim results supplementary published Wednesday, BHP Billiton mined 1.367 million carats in the second half of 2008, generating $218 million in revenues. Compared to the July-December period of 2007, production and revenues declined 26.7 percent and 4.8 percent, respectively.
The average sales value of $159.47 per carat reflects two very different economic situations in the market: the high speculative prices in the summer and the low prices from October to December.
Since that time, prices fell even further.
BHP’s Diamond earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to $94 million from $60 million the year before, while earnings before interest and taxes (EBIT) rose from $14 million to $15 million in the six-month period. The company stated the diamond net operating assets at $1.247 billion.