Diamcor Mining’s sales came in below anticipated levels at its first tender of the fourth fiscal quarter amid power outages by South African provider Eskom that hindered production.
The company sold 1,466 carats of rough from its Krone-Endora at Venetia deposit for $294,697 at the recent tender, it said last month. The average price was $201 per carat, compared to an average price of $247 per carat during the previous quarter, which ended December 31.
“The total number of carats of rough diamonds initially tendered and sold in the current quarter…was lower than anticipated due to widely reported increases in daily load-shedding and power outages throughout South Africa,” Diamcor said. “The company…is in advanced discussions on objectives aimed at reducing the impact of this load-shedding for the long term.”
During the period, the miner unearthed a 72.53-carat rough from the site, which it is currently offering for sale in Dubai. It expects revenue from that stone to offset the lower sales volume, it explained.
Diamcor has recovered approximately 1,500 carats of additional rough from the mine during the quarter. It plans to offer the goods at the final tender of the period or to sell them the following quarter, it noted.
“I am confident the implementation of the power-supply backup systems will provide improved power consistency needed for the processing plant to reach its designed potential,” added Diamcor CEO Dean Taylor.
Image: Packages of rough diamonds. (Diamcor Mining)