Dec 01, 2015

Diamcor Mining H1 Losses on Krone-Endora Infrastructure Investments

Junior Canadian diamond mining and exploration company Diamcor Mining Inc with operations primarily in South Africa today released an update on its operational and financial performance for the six months ended September 30, 2015. The company said that its revenues were up 30%, but increased expenditure on development and administration of the Krone-Endora project which it had acquired from De Beers has also led to an increase in Operating Expenses. The company’s net loss widened by 49% during this period.

Diamcor, which currently generates limited revenues from the incidental recovery and sale of rough diamonds, reported that during Q2 it sold 4,845.93 carats of rough diamonds during the second fiscal quarter, a 40% increase when compared to the sale of 3,449.32 carats during the same period in the prior fiscal year. Revenue from the sale yielded $912,385, a 50% increase when compared to revenue of $609,058 realised during the same period in the prior fiscal year.

For the first half of the year, the Company realized revenue of $1,486,665, a 30% increase when compared to revenues of $1,142,605 realized during the same period in the prior fiscal year. Total carats recovered and sold were 7,702.17, with an additional 4,030.83 carats recovered and held in inventory, a significant increase when compared to 5,956.55 carats recovered and sold, and 1,534 carats held in inventory in the same period during the prior fiscal year. This is result of increased processing activities and recent upgrades to the main treatment facilities at the Krone-Endora at Venetia project.

The Company realized a net loss from operations for Q2 of $589,455 as compared to a net loss of $416,089 in Q2 2014.

For the six month period ending September 30, 2015 the Company realized a net loss of $1,311,734, an increase when compared to a net loss of $881,295 realized during the same period in the prior fiscal year.

The Company said that ongoing efforts at Krone-Endora at Venetia are designed to support continued trial mining, additional bulk sampling, and the transition to 24/7 operations.