Burgundy Reports 27% Drop in Sales
August 01, 24
(IDEX Online) - Burgundy, new owners of the Ekati diamond mine in Canada, reported a 27 per cent drop in revenue during the second quarter of 2024, down year-on-year from $145m to $106m.
It sold 1,030,488 carats in the three months ending 30 June, down 23 per cent on 1,338,942 carats in Q2 2023. Average price per carat dropped slightly from $108 to $103. Its diamond inventories increased 5 per cent to 1.32m carats.
But the Australia-based miner sounded a cautiously optimistic note. "Based on discussions with experts in the field, we believe it is just a matter of time before we start to see the diamond price move upwards as the supply demand equation tightens," it said in its Quarterly Activities Report.
"We are also very enthused to see De Beers' intention for a renewed marketing campaign - the first time in 30 years. It is unquestionable that diamond marketing has always led to bullish periods for our sector."
Burgundy bought the mine, 125 miles south of the Arctic Circle, in Northwest Territories, last June for $136m from the Arctic Canadian Diamond Company and plans to extend its life by developing underground operations.
The company said the number of tonnes processed in the June quarter were down 9 per cent year-on-year, largely due to extra maintenance associated with a major annual plant shutdown.
Pic courtesy Burgundy shows Ekati mine.