Revenue from the Ekati mine’s rough output fell 38% during the first fiscal quarter, according to owner Burgundy Diamond Mines.
The company sold 1.2 million carats from the Canadian deposit for $73 million for the period that ended March 31, it said last week. That compares to the sale of 1.3 million carats for $118 million during the same period a year ago. Meanwhile, the average price slid 30% to $62 per carat as the miner sold lower-quality goods carried over from the previous year, it explained.
The drop comes despite an increase in like-for-like sales in February and March, which grew 8% to 10% over December and January prices.
During the January-to-March period, the company worked on a mine plan it expects to extend Ekati’s life to mid-2030 and beyond, Burgundy noted. The company also continued to work on cost reduction, which included employee layoffs.
Production declined 33% to 800,000 carats for the three months as the miner processed 46% less ore amid a transition from the Sable open pit to the Point Lake open pit. The miner’s diamond inventory fell 44% to 600,000 carats during the move, equating to a value of $48.4 million.
“The transition to Point Lake has not proceeded without disruption to ore supply due to wet and muddy mining conditions hampering ore and waste removal,” the company said. “By the end of the quarter this has been dealt with, setting up the second quarter for much improved performance.”
Image: The Misery underground operations. (Burgundy Diamond Mines)
