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Dominion Gains from Higher-Value Ekati Production
Jun 13, 2017 5:07 AM
By Rapaport News
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RAPAPORT... Dominion Diamond Corporation’s sales increased sharply in
the fiscal first quarter as the miner shifted to a higher-value section of its
Ekati 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 $137.7
million due to an increase in goods from the more lucrative Misery Main and
Koala pipes. In particular, an auction of about $21 million worth of high-value
fancy-color diamonds, mostly from Misery Main, contributed to the overall
stronger result.
Meanwhile, rough sales from the Diavik mine — of which
Dominion owns 40% in partnership with Rio Tinto — were almost flat at $73.3
million versus $73.1 million last year. The company owns 100% of Ekati.
“We are building upon the strong momentum that started at the
beginning of this year, while advancing our project pipeline to support
longer-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 |
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Tags:
Canada, Dominion, Dominion Diamond Corporation, ekati, Jim Gowans, Koala, mining, Misery Main, northwest territories, Rapaport News, Rio Tinto
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