Weak Diamond Market Triggers $94.7M Loss for Burgundy 

Burgundy Diamond Mines has reported a loss for 2024 as weak demand led to a devaluation of its assets. 

The company posted a net loss of $94.7 million for the 12-month period, compared with a loss of $676,000 for the second half of 2023, the company said last week. However, the comparison is not on a like-for-like basis, as Burgundy acquired the Ekati mine in Canada in July of 2023. 

The loss was the result of a $127 million impairment, or devaluation of the company’s mine, property, plant and equipment amid weakened diamond demand and pricing. A deferred tax recovery on the impairment charge of $43.8 million partly offset the decrease, Burgundy explained. 

Revenue for the full year came to $442.1 million, versus $257.5 million for the July-to-December period a year earlier. 

The company has 186,338 carats in inventory, compared to 244,931 carats as of December 31.  

Image: The Misery pit at the Ekati mine. (Burgundy Diamond Mines)