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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: d:oug who wrote (37373)	7/20/1999 7:12:00 AM
From: long-gone	Respond to of 116770

Tiffany makes big bet to protect themselves higher future mineral prices: Monday July 19, 6:20 pm Eastern Time Tiffany Buys Stake in Diamond Miner By RACHEL BECK AP Business Writer NEW YORK (AP) -- Tiffany & Co. will spend about $72 million to invest in a Canadian diamond miner, a deal that will ensure a steady supply of gems at cheaper prices to the famed upscale retailer. Tiffany's stock rose $1.25 to $104 on the news that it had bought a 14.9 percent stake in Aber Resources Ltd., which owns a 40 percent interest in the Diavik Diamonds Project in Canada's Northwest Territories. The deal marks the first time that Tiffany has made an investment in a mining company. ''Tiffany will now source their diamonds directly from the mine, which will give them more control over the quality of the diamonds that they will sell and bring down the price'' for the company, said Ken Gassman, a retail analyst at Davenport & Co. in Richmond, Va. ''That means that Tiffany will have control over a diamond from the moment it comes from the mine to the ring or pin that it is set in.'' Tiffany's investment in Aber comes as the company seeks to manufacture more of its products itself. Alan Rifkin, a retail analyst at Thomas Weisel Partners in San Francisco, said that Tiffany now produces 31 percent of its products -- which include jewelry, china, stationary, crystal, watches and clocks, leather goods and fragrances -- but is aiming to boost that to 50 percent. ''The company seeks to gain more control over the whole production process and this is big step towards that,'' Rifkin said. Tiffany said in a statement that it will get a ''considerable portion of its future diamond needs'' from Vancouver-based Aber at ''competitive prices.''(cont) biz.yahoo.com Think there could be gold reserves on Aber land also, not just diamonds?