JOHANNESBURG (miningweekly.com) – TSX-listed Diamcor Mining sold 3 579 ct of rough diamonds in the third quarter ended December 31, generating gross revenue of C$886 843, averaging $221.96/ct.

This was a 36% decrease on the comparative period in 2013, when the company reported selling 3 955 ct and gross revenue of C$1.39-million, owing to the recovery of a 91.7 ct gem-quality diamond, which was sold for $817 920.

Further, Diamcor recovered an additional 1 678 ct during the third fiscal quarter of 2015, which were held in inventory. For the nine-month period ended December 31gross revenue was C$2.02-million compared with C$2.83-million for the comparative period during the prior fiscal year.

Rough diamonds recovered and sold during the period under review were the result of continued processing of material in the 1-mm- to 26-mm-size fractions, with the vast majority of this material being from the lower-grade upper gravels from the K1 area of the Krone-Endora at Venetia project, in Limpopo.

Material in the 26-mm-size fraction range continued to be screened off and stockpiled during the period, pending completion of the planned expansion at the project.

Further, project upgrades under way were designed to effectively treat the 26-mm-size fractions and also designed to enhance efficiencies related to all material sizes.  The company expected to complete the expansion, which includes upgrades that were implemented in the fiscal quarter, in April 2015. 

Meanwhile, the company also reported operating expenses of $709 449, a modest increase when compared with $573 720 in 2013.

However, for the nine-month period ended December, operating expenses were $1.1-million, a significant 29% decline compared with $1.5-million in the prior year period. This drop was owed to reduced labour, contracted equipment and fuel requirements, which resulted from processes being automated over the past few fiscal quarters.

Diamcor realised net income from operating activities of $177 344 during the quarter compared with $822 871 for the same period during the prior fiscal year. Net income from operating activities was $925 644, a decrease on the $1.27-million in the prior year period.

As of December 31, the company had cash and cash equivalents of $3.37-million.

TIFFANY & CO
In support of the company’s plans, jeweller Tiffany & Co Canada agreed to a one-year deferral and loan extensions, effective December 1, 2014, of all principal and interest payments accruing pursuant to the terms of its loan and convertible debenture financings with the company.

In 2011, Diamcor established a long-term strategic alliance and first right of refusal with Tiffany & Co Canada to buy up to 100% of the future production of rough diamonds from the Krone-Endora at Venetia project at prices to be determined by the parties on an ongoing basis.

Interest would continue to accrue on the outstanding balances of the financing facilities during this period, while payments of both principle and interest would start in January 2016.