Strong Rough Prices Drive Revenue Surge for Ekati Mine

Revenue from the Ekati mine's rough diamond output soared by 70% in the first fiscal quarter, according to owner Burgundy Diamond Mines
Strong Rough Prices Drive Revenue Surge for Ekati Mine

The company sold 1.3 million carats from the Canadian deposit, generating $117 million for the period ending March 31. This is a significant increase compared to the 798,199 carats sold for $69 million during the same period last year. The average price per carat rose by 3.5% to $89. However, Burgundy explained that the average price dropped from $94 per carat due to receiving payment for a parcel of low-value carats sold in 2023 during this quarter.

During the January-to-March period, Burgundy completed mine-life extension work on the Sable underground deposit, the Misery underground extension, and the Fox underground and stockpile.

Production dipped by 3% to 1.2 million carats over the three months, as the company processed a higher proportion of lower-grade ore from Sable.

"The opening quarter of 2024 marks our third period in charge after our acquisition in June last year, and we are pleased with the improvements made in less than 11 months of ownership," said Burgundy CEO Kim Truter. "Last quarter, we enhanced our sales process by adding an extra sale and launching our debut viewing event in Dubai. Increased global market access has led to more bids from clients."

Burgundy acquired Ekati from Arctic Canadian Diamond Company for $136 million in March 2023. Concurrently, the company decided not to pursue its options at the Ellendale mine in Australia, which it had considered acquiring.

Burgundy reported having approximately $108 million in rough inventory at the end of March.

Diamond World