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Dominion's 3Q Sales Jump on Higher Ekati Production
Nov 23, 2014 3:15 AM
By Avi Krawitz
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RAPAPORT... Dominion Diamond Corporation’s sales jumped an estimated 47 percent during the third quarter that ended on October 31 due to increased production at the Ekati mine.
The company reported total sales of $222.3 million, which included proceeds from Ekati and its 40 percent stake in the Diavik mine, compared with sales of $151.6 million reported in the same period a year earlier. Dominion sold 1.154 million carats of diamonds during the quarter for an estimated average price of $193 per carat.
Ekati contributed $141.9 million from 458,000 carats of diamonds sold, for an average price of $310 per carat. Production at the mine grew 60 percent to 975,000 carats, with ore grades up 57 percent to 0.85 carat per tonne. Sales did not include diamonds that were sold from the processing of material from the Misery satellite pipes, which amounted to approximately 170,000 carats for an estimated $13.6 million, or $79 per carat.
The company stated that production at Ekati continued to exceed its initial plan for the mine, driven by higher-than-expected grades and operational improvements at the processing plant. Mining encompassed the Fox, Koala, Koala North and Misery satellite pipes, and coarse ore rejects at the mine. The company has started waste stripping in preparation for mining at the Pigeon pipe.
Dominion’s sales from Diavik amounted to $80.4 million from 696,000 carats at an average price of $115.50 per carat. Production at Diavik, which is operated by 60 percent stakeholder Rio Tinto, fell 19 percent during the period, with Dominion’s share amounting to 589,000 carats. Production declined due to the processing of a lower proportion of the higher-grade A-154 South ore kimberlite pipe, the company explained.
Dominion reported that it held rough diamond inventory with an estimated market value of about $350 million on October 31, including $185 million worth of rough available for sale at market value and $15 million worth from samples used in the sorting process. The balance of approximately $165 million represents work in progress, the company explained.
During the first nine months of the fiscal year, Dominion’s sales totaled $675.2 million from 3.5 million carats sold, compared with $522.3 million reported a year earlier.
The company is expected to report full third-quarter earnings in December.
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Tags:
Avi Krawitz, diamonds, Diavik, Dominion Diamond Corp., ekati, Rapaport, Rio Tinto
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