Diamcor Posts Q2 Profit Despite Drop in Sales

(IDEX Online) - Junior miner Diamcor Mining Inc. has reported net income of C$350,676 ($265,208) for its second fiscal quarter, ended September 30. This compares favorable to a net loss of C$417,368 ($315,646) in the prior fiscal year. 

Despite the increase in profit, Diamcor saw a drop in sales revenue. 

The company sold 3882.82 carats of rough diamonds, generating revenues of C$730,962 ($569,059) at an average of $146 per carat. This is a decrease compared to revenues of C$1,041,470 (USD $726,846) and an average of $278 per carat realized during the same period in the prior fiscal year in which several larger diamonds in the +10.8 special category were recovered, tendered, and sold.  

Diamcor said the decrease in overall sales volumes during the current quarter resulted from the timing of rough diamond tenders during the current quarter with the final tender not closing until October of 2019, after the fiscal quarter, and reduced processing volumes because of contract heavy equipment reliability issues experienced early in the second quarter.