Strong Rough Prices Drive Ekati Sales Rise

Revenue from the Ekati mine’s rough output climbed 70% during the first fiscal quarter, according to owner Burgundy Diamond Mines. 

The company sold 1.3 million carats from the Canadian deposit for $117 million for the period that ended March 31, it said recently. That compares to the sale of 798,199 carats for $69 million during the same period a year ago. Meanwhile, the average price rose 3.5% to $89 per carat. The company received payment for a parcel of low-value carats sold in 2023 during the quarter, driving down the average price from $94 per carat, Burgundy explained.  

During the January-to-March period, the company completed mine-life extension work on the Sable underground deposit, the Misery underground extension, and the Fox underground and stockpile, it noted. 

Production slipped 3% to 1.2 million carats for the three months as the miner processed a higher proportion of lower-grade ore from Sable. 

“The opening quarter of 2024 represents our third period in charge after our…acquisition in June last year, and we are pleased with the number of improvements made in less than 11 months of ownership,” said Burgundy CEO Kim Truter. “Last quarter, we mentioned enhancing our sales process. That is exactly what we did by adding an extra sale and launching our debut viewing event in Dubai. The more access we have to the global market, the more bids we receive from clients.” 

Burgundy purchased Ekati from Arctic Canadian Diamond Company for $136 million in March 2023. At the same time, it chose not to pursue its options at the Ellendale mine in Australia, of which it had considered taking ownership. 

Burgundy had approximately $108 million in rough inventory at the end of March, it added. 

Image: An aerial view of the Ekati mine. (Burgundy Diamond Mines)