Diamond sales show improvement
Market turnaround bodes well for Dominion
Robin Grant
Northern News Services
Friday, June 3, 2016
SOMBA K'E/YELLOWKNIFE
Dominion Diamond Corporation reported a boost in sales and production during its first quarter in a May 25 news release.
Rough diamonds from the Ekati Diamond Mine. The Dominion Diamond
Corporation, which owns a controlling share in the mine, says the outlook for 2017 looks positive. - photo courtesy of Dominion Diamond Corporation |
Tom Hoefer, executive director with the NWT and Nunavut Chamber of Mines, said the company's first quarter showing reflects market improvements.
"Whether it's a long-term turnaround remains to be seen. But it's certainly an improvement," said Hoefer. "Dominion's production should increase and with the improved market, prices should increase as well."
Dominion reported in May that commercial production for Misery Mine is ahead of schedule.
"We're pleased to see that the Misery Main commercial production was declared, and ahead of plan," he said, adding that the company will be producing more diamonds now and it is getting better prices for the stones. "It bodes well for Dominion."
Overall, the company reported US$178.3 million in sales over the first quarter, down from US$187.7 million the year before.
But it stated when it lowered prices by five per cent in January, prices quickly recovered, ending the first quarter about eight per cent higher than it started in the fiscal year.
Conditions in the rough diamond market during the first quarter improved significantly as manufacturers replenished inventories because of a positive retail season at the end of 2015, the company stated.
It also stated production conditions look positive for 2017.
The company stated the U.S. market drove demand growth during the period and despite uncertain growth on sentiment, sales in mainland China were steady.
Dominion stated carat production in the first quarter was 34 per cent higher versus the previous year.
During the period, the Ekati Diamond Mine recovered 1.1 million carats from one million tonnes of ore processed.
The company stated the ore mined from the Pigeon and Misery pipes totalled one million tonnes.
