TSX-V-listed Diamcor Mining managed to tender and sell 4 468 ct of rough diamonds in the six months ended June 30, generating revenue of about $1.2-million and realising an average price of $270.39/ct.
The company also delivered an additional 1 500 ct for tender right before the period ended.
Diamcor, however, posted a net loss of $844 899 for the six months ended June 30, resulting in a loss a share of $0.01.
The company’s Krone-Endora at Venetia operation, in South Africa, has, from 2011 to date, recovered and sold 165 427 ct of rough diamonds, generating revenue of $28-million and realising an average $170.26/ct.
The company says its operations at Krone-Endora at Venetia remain constrained as a result of Covid-19 restrictions.
Diamcor explains that, owing to the ongoing uncertainty resulting from the global pandemic, the company’s’ operations could continue to be impacted in a number of ways including a suspension of operations, or an inability to ship and/or sell rough and/or polished diamonds during this period.
These possible impacts could result from government directives, the need to modify work practices to meet appropriate health and safety standards, a lack of demand for rough and/or polished diamonds, a lack of available liquidity to meet ongoing operational expenses, or by other Covid-19-related impacts on the availability of labour or the supply chain.
Accordingly, estimates of the extent to which the Covid-19 pandemic may materially adversely affect Diamcor’s operations, financial results and condition in future periods are also subject to significant uncertainty.
The most significant sources of estimation uncertainty include estimated resources, valuation of mineral properties, the provision for deferred taxes and the valuation of decommissioning and site restoration provisions.
Diamcor nonetheless plans on finalising its Phase 1 expansion efforts, while operating on the limited scale.
Phase 1 involves doubling the current processing volumes, and should be completed by September 30, while Phase 2 involves further expansions to the processing facilities.