Dominion Reports 'Exceptional Performance' From Ekati And Diavik In Q2

(IDEX Online) – Dominion Diamond Corp reports that the Ekati Diamond Mine and the Diavik Diamond Mine "performed exceptionally well" in the second fiscal quarter of 2015 (May through July).

Rough diamond production, sales and pricing all exceeded plan.

The company recorded a second quarter consolidated net income attributable to shareholders of $26.6 million.

Chairman and Chief Executive Officer, Robert Gannicott, stated: "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."

"The first six months of fiscal 2015 saw continuing growth in diamond  jewelry sales in the United States and the mass market in China, which together account for over half of the world's diamond  jewelry sales, resulting in rough diamond prices rising approximately 8 percent.

Dominion continues to "focus on delivering enhanced value" from the Ekati Diamond Mine in which it has an 80 percent interest, and the Diavik Diamond Mine in which the firm owns a 40 percent interest).

Carats recovered in the first six months of fiscal 2015 at the Ekati Diamond Mine were estimated to be 30 percent ahead of plan due to higher than expected grades coupled with operational improvements to the processing plant implemented by the company over the last 10 months.

Stripping at the Misery pipe pushback is proceeding according to plan. A total of $121 million of capital expenditure remains to be spent before the Misery Main pipe, at 4.0 carats per tonne and $105 per carat, as of January 31, 2014, comes into production in December, 2015.

During the second quarter, Dominion promoted the Misery South and Southwest satellite pipes to inferred mineral resources.

During this fiscal year, Dominion has expensed $15.5 million on the Jay Project which involves the development of the largest diamondiferous resource in North America. The open pit portion of the Jay Pipe has the potential to extend the operating life of the Ekati Diamond Mine by a further 10 years beyond the currently scheduled closure in 2019 with the potential for an underground mine beyond that.

Dominion said it has a strong balance sheet and is well-funded to achieve its growth objectives. As of July 31, it held total cash and cash equivalents of $384 million.