Revenue from the Ekati mine’s rough diamond output soared by 70% in the first fiscal quarter, according to Burgundy Diamond Mines, the mine’s owner.
The company reported sales of 1.3 million carats from the Canadian deposit, totaling $117 million for the period ending March 31.
This is a significant increase compared to the sale of 798,199 carats for $69 million during the same period last year. The average price per carat rose by 3.5% to $89.
Burgundy noted that the average price was affected by a payment received for a parcel of low-value carats sold in 2023, which brought the price down from $94 per carat.
During the January-to-March period, the company completed mine-life extension work on several deposits, including the Sable underground deposit, the Misery underground extension, and the Fox underground and stockpile.
Despite this, production slipped by 3% to 1.2 million carats as the miner processed a higher proportion of lower-grade ore from Sable.
“The opening quarter of 2024 represents our third period in charge after our acquisition in June last year, and we are pleased with the number of improvements made in less than 11 months of ownership,” said Burgundy CEO Kim Truter.
“Last quarter, we mentioned enhancing our sales process. We did exactly that by adding an extra sale and launching our debut viewing event in Dubai. The more access we have to the global market, the more bids we receive from clients.”
Burgundy acquired Ekati from Arctic Canadian Diamond Company for $136 million in March 2023. At the same time, the company decided not to pursue its options at the Ellendale mine in Australia, which it had been considering for ownership.
As of the end of March, Burgundy held approximately $108 million in rough inventory.
