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Dominion Loss Widens After Ekati Fire
Sep 11, 2016 8:41 AM
By Rapaport News
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RAPAPORT... Dominion Diamond Corporation’s loss nearly doubled in its
fiscal second quarter, after a fire at the Ekati mine in Canada resulted in plant
closure and an estimated $15 million in repairs.
Net loss attributable to shareholders widened 82 percent to $32.9
million in the three months that ended July 31, the miner reported. Diamond
sales slumped
24 percent to $160 million.
The company closed the process plant at Ekati following the incident
on June 23. Operations are expected to resume September 21. Furthermore, Dominion
incurred $22 million in fixed, or standby, costs of running the mine.
A chunk of the quarterly loss was attributed to a $6.4
million decline in the value of inventory available for sale, or inventory
impairment. In addition, an adverse impact of foreign exchange resulted in an
income-tax expense of $8.8 million.
Meanwhile, Dominion said it hired Matthew Quinlan as chief
financial officer from CIBC World Markets, a subsidiary of Canadian Imperial
Bank of Commerce, where he was managing director and co-head of global mining
investment banking.
Former Dominion CFO Ron Cameron left the miner July 15 and was replaced in the interim by Cara Allaway.
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Tags:
appointments, Canada, Canadian Imperial Bank of Commerce, CIBC World Markets, Dominion, Dominion Diamond Corporation, ekati, Matthew Quinlan, Rapaport News
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