Burgundy Increases Sales Despite Soft Market
October 29, 24
(IDEX Online) - Burgundy, new owners of the Ekati diamond mine in Canada, has reported an increase in quarterly revenue - as it sold more carats for lower prices.
Total proceeds for the three months to 30 September were $118m, compared to $91m for the same period last year (an increase of 29 per cent).
But average per carat prices fell 28 per cent from $116 to $83 in what the Australian miner described as a "soft diamond market".
The company sold 1.42m carats in the quarter, an 80 per cent increase on 790,000 carats a year ago.
EBITDA was $21.8m, Burgundy said in its Quarterly Activities Report published today (29 October).
"Burgundy has successfully introduced multiple sales channels, complementing the company's propriety auction process," it said.
"The remaining diamond inventory, valued at US$73m, consists of product that is not yet ready for sale but continues to progress through the normal production process managed by the company."
Burgundy bought Ekati, 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.
Kim Truter, CEO at Burgundy, said: "A special milestone for Ekati this quarter was the recovery of the operation's 100 millionth carat after 26 years of production, which is a significant milestone.
"As published, Ekati has 140 million carats remaining in Indicated Mineral Resources which demonstrates Ekati's tier one status."
Pic courtesy Burgundy shows Ekati mine.