Rough Sales for Ekati Mine Rise Despite Market Slowdown
Revenue from the Ekati mine’s rough output climbed 11% during the third quarter, according to owner Burgundy Diamond Mines.
The company sold 784,000 carats of rough from the Canadian deposit for $90 million in total between July 1 and September 13 — up from 901,000 carats for $81 million a year earlier. Burgundy reported these figures last month as sales-to-date for the quarter, which ended September 30.
“The sales results…demonstrate the differentiated value of Burgundy diamonds and our transparent and credible sales channels, despite a softer-than-usual market,” said Burgundy CEO Kim Truter.
Burgundy purchased Ekati from Arctic Canadian Diamond Company for $136 million in March. At the same time, it chose not to pursue its options at the Ellendale mine in Australia, of which it had considered taking ownership.
Burgundy had approximately $139 million in rough inventory at the end of August, in addition to its ongoing diamond production, it noted in the September statement.
The company’s shares rose 16% on the Australian Stock Exchange (ASX) following the announcement.
Image: Rough diamonds from the Ekati mine. (Burgundy Diamond Mines)