Dominion Diamond’s sales drop 24% in Q2

Dominion Diamond Corporation announced its financial results for the quarter closing July 31, 2015. It noted the period recorded a 24 percent drop in its sales valuing at US$ 209.7 million, (US$ 277.3 million in the same quarter of 2014), as per reports.

The company noted the demand for polished diamonds being low, following the slow paced Asian markets, with Chinese demand especially for middle size range of polished diamonds being low. Also, the company brought down its prices at the recent sale in August, which brought its fiscal year-to-date average prices down by around 5 percent; the company noted this was in line with the market prices, reports add.

Production-wise, the company stated that changes to the processing plant at Ekati in order to optimize diamond recovery showed encouraging test results and operational challenges at Ekati’s process plant in Q1 fiscal 2016, that had impacted margins in Q2, have been successfully resolved, as per reports. The ore mined at Koala Underground and Koala North exceeded plan for the period, and preliminary economic assessment at the Sable kimberlite pipe on the Ekati property has been completed, with positive results.

An interim dividend was declared by the Board of Directors of US$ 0.20 per share due to eligible shareholders.

There was a loss of US$ 2.8 million before taxes (US$ 3.8 million profit in the corresponding quarter of 2014).

Brendan Bell, Chief Executive Officer mentioned that the company’s ‘operations are on track and once again performing well, while overcoming production challenges and that it looks ahead to an improved performance’.