Dominion Diamond Corp Posts 61% Jump In Revenue in Fiscal Q1
June 12, 14
(IDEX Online) – Dominion Diamond Corp posted that a 61-percent rise on the year in revenue to $175.5 million in its fiscal first quarter that ended on April 30.
However, its cost of sales also soared – up 69 percent to $137.7 million and gross margin dropped to 21.6 percent from 25.1 percent in the same quarter last year. Profit for the quarter was $10.7 million.
Commenting on the state of the diamond market, the firm said: "Sentiment at the very important JCK Las Vegas show in June reflected the optimism of the US retail market. Demand continues to be steady from China and is picking up from India."
The miner reported the sale of 259,000 carats of goods in the three-month period from the Ekati mine which raised $92.8 million. Meanwhile, at the Diavik mine, it sold 582,000 carats for $82.7 million.
"During the first quarter, both the Ekati Diamond Mine and the Diavik Diamond Mine performed well. Production at both mines was substantially ahead of expectations," Dominion stated.
Its added that an "improved plan" has been developed for mining the Jay kimberlite, the largest diamondiferous resource in North America.
A total of $163 million of capital expenditure remains to be spent on the Misery push-back before bringing the Misery Main Pipe, "which at 4 carats a tonne is one of the richest ore bodies in the world, into full production at the beginning of calendar 2016".
A decision on the development of the A-21 pipe at the Diavik Diamond Mine is expected later this year, the firm said.
Dominion Chairman and CEO Robert Gannicott said, "A year on from our purchase of the Ekati operation, we continue to improve ore production and recoveries as we develop new ore sources.
"The receipt of full operating permits for the Lynx open pit development in less than a year from application speaks better than words about the determination of a newly empowered government of the Northwest Territories to effectively manage through this transition and to support well planned resource development."