Dominion earnings rise 79 per cent
Jessica Davey-Quantick
Northern News Services
Wednesday, June 21, 2017
SOMBA K'E/YELLOWKNIFE
Dominion Diamond Corporation reported on June 12 that earnings for this fiscal year rose 79 per cent over the same period last year.
These numbers reflect earnings before interest, taxes, depreciation and amortization.
In dollar figures, earnings rose from $54.3 million in the first fiscal quarter of 2017 to $97 million. In a news release, chairman of the board Jim Gowans attributed the improvements in sales, gross margin and earnings to high value production at the Ekati Diamond Mine as well as "solid performance" at Diavik.
"We are building upon the strong momentum that started at the beginning of this year, while advancing our project pipeline to support longer-term value generation," he stated.
The number of carats recovered also increased by 17 per cent, from 1.8 million carats last year to 2.1 million this year.
But it wasn't all sunshine and glitter: Dominion also reported a consolidated net loss to shareholders of $7.8 million, or nine cents a share, in the first quarter of fiscal 2018.
On June 13 Dominion elected directors of the company at its annual and special meeting. They are James Gowans, Thomas Andruskevich, Graham Clow, Trudy Curran, Tim Dabson, David Smith, Chuck Strahl and Josef Vejvoda.
Mountain Province president steps down
Mountain Province Diamonds Inc. announced on June 9 that president and chief executive officer Patrick Evans would depart the company after 11 years as CEO, effective immediately.
Mountain Province shares ownership of the Gahcho Kue Diamond Mine with De Beers Canada.
"He worked tirelessly to bring the Gahcho Kue project to a positive development decision and has brought the company to where we are today as a diamond producer and marketer," stated Jonathan Comerford, chair of the board of directors in a news release. "We appreciate his efforts and wish him the best in his future endeavors."
David Whittle has been appointed interim president and chief executive officer, while Evans will continue as a director of the company, providing assistance during the transitional period.
Whittle has been a director of Mountain Province since 1997, and was the president of the company's joint venture partner, Glenmore Highlands Inc., at the time the original discovery of Gahcho Kue's 5034 kimberlite pipe in 1995.
Dominion acquires full ownership of Buffer Zone
Dominion Diamond Corporation announced earlier this month the company has taken over 100 per cent of the ownership of the Buffer Zone at Ekati Diamond Mine.
The Buffer Zone is an area adjacent to Ekati Diamond Mine where the Jay and Lynx kimberlite pipes are located. It spans 891 square kilometres with 106 mining leases, including a total of 38 kimberlite pipes. Last year, Dominion announced it would proceed with development of the Jay pipe project, which the company projected could extend the life of Ekati to 2033.
Previously, the ownership of the Buffer Zone had been shared in a joint venture with Archon Minerals Limited.
The CEO of Archon is Stewart Blusson, one of the geologists who originally discovered the kimberlite pipes at what is now Ekati Mine.
Dominion agreed to convert Archon's participating joint venture interest into a royalty equal to 2.3 per cent of all future gross revenue from diamonds produced from the Buffer Zone in exchange for total ownership.
"We are delighted to have reached this mutually beneficial agreement with Archon," stated chairman of Dominion's board of directors, Jim Gowans, in a news release.
He added the transaction provides "funding certainty" for the Jay project, which is in the final stages of permitting.
Chamber celebrates Mining Week
The NWT & Nunavut Chamber of Mines celebrated NWT Mining Week last week.
A week's worth of events, including public geology walking tours and the annual Miners' Picnic at the Multiplex Arena, was celebrated in conjunction with the Territorial Mine Rescue Competition on June 9 and 10.
The chamber estimates that since mining began in the NWT over 80 years ago, more than $60 billion in minerals have been mined.
"Our mines continue to generate significant benefits today, and these benefits are reaching far across the North and to Canada," stated chamber president Gary Vivian in a news release.
The release also highlighted the contribution of the industry to infrastructure investments in the North, including the railway, three hydro-power generating facilities and highways. Vivian stated that according to the chamber's latest data, nearly 1,900 Northern residents worked in the industry in 2015, including nearly 900 indigenous workers.
