Burgundy Diamond Mines which operates several projects in Canada, including Ekati diamond mine, has published its operational and financial results for the second quarter of 2024 and reported a decline in revenue by 27% to $106 million, compared to $145 million year on year.
During the quarter ended June, the company produced 1.22 million carats of diamonds (-10%) and sold 1.03 million carats (-23%), compared to 1.36 million carats and 1.34 million carats in the second quarter of 2023, respectively. Average price per carat dropped slightly from $108 to $103.
Burgundy said that ore processing in the second quarter of 2024 were 9% lower than the prior corresponding period in 2023, largely due to more maintenance required during its annual processing plant shutdown period. Ekati has two active mines - an open pit operation at Sable and an underground operation at Misery, with approximately 75% of the total ore processed generated from Sable during the period.
Despite broad softening in the polished diamond market, the company concluded three sale events, including one fancy sale. Its diamond inventory, standing at 1.32 million carats, consists of product that is not yet ready for sale but continues to progress through the normal production process managed by Burgundy.
“We had another busy quarter across the business. At Ekati, we successfully completed our major annual plant shutdown, involving over 200 people and 6,500 hours of maintenance in less than a week, and installed two new X-ray sorting machines. Our future Point Lake open pit operation is nearing production, with all necessary permits received,” said Kim Truter, Burgundy CEO and MD.
“Despite suppressed diamond market prices, we remain optimistic as supply-demand tightens and look forward to launching Ekati’s tenth mine – a landmark achievement.”
Theodor Lisovoy, Editor in Chief, Rough&Polished
