Dominion Diamond issues statement on media speculation

Dominion Diamond Corporation, the world’s third largest producer of rough diamonds by value and also the one who operates the Ekati Diamond Mine, has issued a statement regarding the media speculation about hiring Rothschild and looking for potential buyers. 

The statement from the Dominion reads, “Dominion confirms that Rothschild, which has historically acted as the Company’s financial advisor on a number of strategic matters, was retained earlier this year to assist the Company and its board of directors in considering a number of possible initiatives to maximize shareholder value.” 

It further says, “There can be no assurances that any transaction will result from these matters and the Company intends to make no further announcements or comments regarding these matters unless the circumstances so warrant.” 

Earlier it had been reported that Dominion was facing trouble due to shareholders questioning the strategies and management and wanted it to change for the benefit of stakeholders.

 It may be recalled that the Dominion Diamond Corporation is the world’s third largest producer of rough diamonds by value. Both of its production assets are located in the low political risk environment of the Northwest Territories in Canada where the Company also has its head office. The Company is well capitalized and has a strong balance sheet. 

Moreover, the Company operates the Ekati Diamond Mine through its 88.9 per cent ownership as well as a 65.3 per cent ownership in the surrounding areas containing additional reserves and resources, and also owns 40 per cent of the Diavik Diamond Mine.