New Ekati Owners Report Record Revenues
May 02, 24
(IDEX Online) - Burgundy, new owners of the Ekati diamond mine in Canada, is reporting record revenues of $117m in Q1.
The Australian miner paid $136m when it bought the mine from the Arctic Canadian Diamond Company last June, with plans to extend its life by developing underground operations.
In the three months to 31 March Burgundy sold 1.32 m carats, a 65 per cent increase on Q1 2023. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was $26m, up 49 per cent from Q1 2023
It said despite "broad softening" in the polished diamond market, Ekati had continued to generate strong buyer interest and high sell-through rates.
It will hold a high-value fancy diamond debut viewing in Dubai this quarter, featuring a 23.15 carat intense fancy yellow diamond (pictured) which was recovered from Ekati in January.
"We remain focused on three key points, including meeting our mining targets, operational optimisation, and mine life extension; and I believe we have delivered on this already," said Burgundy CEO Kim Truter.
"As the diamond market strengthens, we are enviably positioned to benefit - this will mark an exciting time to be a Burgundy shareholder."
Burgundy bought the mine, 125 miles south of the Arctic Circle, in Northwest Territories from Arctic Canadian Diamond Company, which acquired it in February 2021 after Dominion Diamonds, filed for insolvency.