Burgundy Output, Sales Volume Tank Amid Pit Closure

Production from the Ekati deposit in Canada slid 51% year on year in the third quarter as owner Burgundy Diamond Mines struggled with the shutdown of one of its pits in the challenging market.

The company saw output of 610,000 carats, compared with 1.2 million carats during the same period a year ago, it said last week. Production was also down 25% from 810,000 carats in the previous quarter.

During the quarter, Burgundy suspended open-pit mining operations at its Point Lake site due to difficult market conditions that caused “subeconomic prices” for its diamonds, it explained.

“As a result of the suspension of operations, there has been a corresponding decrease in tonnes mined and processed, and carats recovered,” the company said. “The business continues to optimize its cost structure to reflect the reduced mining footprint.”

Meanwhile, sales volume slid 43% year on year to 810,000 carats and was down 10% from the previous quarter. Diamond inventories plunged 68% from the same period of 2024 to 360,000 carats, while cash on hand fell to $4.2 million at the end of the quarter, versus $7.2 million as of June 30.

Last month, Burgundy reported it was negotiating external funding from multiple parties to keep its business afloat. It also applied for relief of up to CAD 150 million ($107.8 million) through the Canada Enterprise Emergency Funding Corporation (CEEFC).

Image: Rough diamonds. (Shutterstock)