Dominion Diamond Corp swings to Q2 profit as revenues rise
TORONTO (miningweekly.com) – Canadian diamond producer Dominion Diamond Corp on Wednesday reported a profit for the three months ended July of $26.6-million, or $0.31 a share, compared with a net loss of $13.9-million, or $0.16 a share, in the prior-year period.
Consolidated sales from continuing operations were $277.3-million compared with $261.8-million a year earlier, resulting in an operating profit of $46.5-million compared with the previous period's operating profit of $15.7-million.
Dominion’s consolidated earnings before interest, taxes, depreciation and amortisation from continuing operations was $109.6-million compared with $48.3-million in the comparable quarter of last year.
During the quarter, the precious gem producer reported that output from its two producing mines in Canada’s Northwest Territories was “substantially ahead of plan” owing to higher-than-expected grades and was boosted by operational improvements.
The Toronto-based miner explained that owing to unexpected higher grades coupled with operational improvements executed over the last ten months at its Ekati process plant, the recovered carats rose by about 30% during the first half of the year, while process plant improvements were ongoing.
At Diavik, which Dominion jointly owns with 60%-stakeholder Rio Tinto, ore processing averaged 29% ahead of plan during the three-month period and 23% ahead of plan for the first half of the company’s financial year, mainly owing to improved mining rates and equipment availability.
For the quarter, Dominion reported a 5.9% rise in rough diamond sales year-over-year to $277.3-million. The company sold 1.511-million carats, up almost 16% when compared with a year earlier.
Dominion added that average rough diamond prices rose 8% since January.
The company's output from Ekati swelled to 802 000 ct compared with 483 000 ct a year earlier, while at Diavik Dominion's 40% share of output increased 44.5% to 870 000 ct.
The diamond miner excluded $10.5-million in sales of rough diamonds from Ekati's Misery satellite pipes, saying that it now expected Misery to contribute to commercial production from September 1.
Dominion’s TSX-listed stock on Wednesday closed C$0.08 higher at C$14.61 apiece.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation