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RAPAPORT... Dominion Diamond Corporation reported that its profit rose to $26.6 million in the second quarter that ended on July 31, compared with a loss of $13.9 million one year earlier. Meanwhile, rough diamond sales rose 5.9 percent year on year to $277.3 million and cost of sales fell 4.2 percent to $221.2 million. Gross margin as a percentage of sales improved to 20.2 percent compared with 11.7 percent in 2013. The company sold 1.511 million carats, representing an increase of approximately 16 percent compared with one year earlier. In addition, Dominion stated that average rough diamond prices have risen 8 percent since January. The company's 40 percent share of production from the Diavik diamond mine jumped 44.5 percent to 870,000 carats. Dominion's production from the Ekati diamond mine surged to 802,000 carats compared with 483,000 carats one year earlier. Dominion excluded $10.5 million in sales of rough diamonds from Ekati's Misery satellite pipes. However, the mining company anticipates that Misery will contribute to commercial production beginning September 1. Rough inventory on July 31 totaled $315 million, of which $45 million represent discretionary goods. Robert Gannicott, the chairman and CEO of Dominion Diamonds, said, "It is a pleasure to be able to report another quarter that exceeds expectations. We have embedded improvements to diamond recovery, rough diamond marketing and cost control efficiencies to deliver a story that continues to improve."
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