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Dominion Swings to 1Q Loss

Jun 9, 2016 5:50 AM   By Rapaport News
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Dominion Diamond Corporation announced a quarterly loss as a lower-value product mix from its Ekati mine in Canada depressed the average price of rough sold by 62 percent.

The miner reported a loss of $1 million in the first fiscal quarter that ended April 30 versus a profit of $12 million a year ago. The average price at the Ekati mine plummeted to $68 per carat from $180 per carat a year ago.

The quarter fell in a “transitional period” at Ekati with lower margins. The lull also resulted in an inventory impairment of $19.6 million, which, along with a foreign-exchange impact on income tax, contributed to the loss, the company added. However, Dominion said it started commercial production at Misery Main, the “richest ore body on the Ekati property,” in May. 

As reported earlier last month, sales declined 5 percent from a year ago to $178.3 million in the first fiscal quarter as rough prices fell year on year.
Tags: Dominion, Dominion Diamond Corporation, mining, Rapaport News, rough, Rough Diamonds
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