Dominion Gains from Higher-Value Ekati Production

By Rapaport News / June 13, 2017 / / Article Link

RAPAPORT... Dominion Diamond Corporation's sales increased sharply inthe fiscal first quarter as the miner shifted to a higher-value section of itsEkati deposit in Canada's Northwest Territories.Revenue jumped 18% to $211 million in the three months ending April 30, with the average selling price of rough rising to $90 per carat from$69 per carat a year earlier. Rough sales from Ekati surged 31% to $137.7million due to an increase in goods from the more lucrative Misery Main andKoala pipes. In particular, an auction of about $21 million worth of high-valuefancy-color diamonds, mostly from Misery Main, contributed to the overallstronger result. Meanwhile, rough sales from the Diavik mine - of whichDominion owns 40% in partnership with Rio Tinto - were almost flat at $73.3million versus $73.1 million last year. The company owns 100% of Ekati. "We are building upon the strong momentum that started at thebeginning of this year, while advancing our project pipeline to supportlonger-term value generation," said Dominion chairman Jim Gowans. Nevertheless, Dominion's net loss was 47% greater at $7.8 million,impacted by a foreign-exchange loss of $13.6 million and restructuring costs of$2.3 million, the miner explained.Image: Copyright 2016 Dominion Diamond Corporation