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Dominion Swings to Loss in Fiscal 2016 as Subdued Diamond Market Cuts Sales
Apr 14, 2016 10:11 AM
By Rapaport News
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RAPAPORT... Dominion Diamond Corporation declared a net loss in fiscal
2016 as a weaker diamond market coupled with lower gem prices that persisted
throughout the year cut revenue from its two Canadian mines.
The company recorded a $38.8 million loss over a year to
January 31, compared with a profit of $73.6 million in fiscal 2015. Sales dived
21 percent to $720.6 million as revenue from the Ekati mine that the company
owns outright slid 18 percent and the Diavik pit, where Dominion has a 40
percent ownership, suffered a 27-percent drop.
Given a backdrop of a slower diamond market, the average
price of gems produced at Ekati retreated to $199 per carat from $260 a year
earlier, the miner said. The mean the selling price of Diavik diamonds, however, jumped
to $147 per carat from $117 as Dominion held back lower-than-average priced
inventory, it added.
The company also attributed the full-year loss to an
income-tax expense resulting from exchange-rate fluctuations and an after-tax
one-time charge in connection with the departure of chairman Robert Gannicott.
Jim Gowans, a former executive at De Beers, has been
appointed non-executive chairman, replacing Gannicott, who will remain with the
company as a director.
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Tags:
Diavik, Dominion, Dominion Diamond Corporation, ekati, mining, Rapaport News, rough sales
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