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Dominion Gains from Higher-Value Ekati Production

Sales jump 18% as miner focuses on more lucrative area of Canada asset.
Jun 13, 2017 5:07 AM   By Rapaport News
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Dominion Diamond Corporation’s sales increased sharply in the fiscal first quarter as the miner shifted to a higher-value section of its Ekati deposit in Canada’s Northwest Territories.

Revenue jumped 18% to $211 million in the three months ending April 30, with the average selling price of rough rising to $90 per carat from $69 per carat a year earlier. Rough sales from Ekati surged 31% to $137.7 million due to an increase in goods from the more lucrative Misery Main and Koala pipes. In particular, an auction of about $21 million worth of high-value fancy-color diamonds, mostly from Misery Main, contributed to the overall stronger result.

Meanwhile, rough sales from the Diavik mine — of which Dominion owns 40% in partnership with Rio Tinto — were almost flat at $73.3 million versus $73.1 million last year. The company owns 100% of Ekati.

“We are building upon the strong momentum that started at the beginning of this year, while advancing our project pipeline to support longer-term value generation,” said Dominion chairman Jim Gowans.

Nevertheless, Dominion’s net loss was 47% greater at $7.8 million, impacted by a foreign-exchange loss of $13.6 million and restructuring costs of $2.3 million, the miner explained.

Image: Copyright © 2016 Dominion Diamond Corporation
Tags: Canada, Dominion, Dominion Diamond Corporation, ekati, Jim Gowans, Koala, mining, Misery Main, northwest territories, Rapaport News, Rio Tinto
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