Diamcor Mining Inc. yesterday announced a net income of C$350,676 for the period ended September 30, 2019, which the Company pointed out was “a significant increase when compared to a net loss of (C$417,368) realised during the same period in the prior fiscal year”.   

The Company tendered and sold 3882.82 carats of rough diamonds in its second fiscal quarter ending September 30, 2019, generating revenues of C$730,962 (USD $569,059); thus realising an average price per carat of US$146.

“This is a decrease when compared to revenues of C$1,041,470 (US$ $726,846) and an average of (US)$278 per carat realized during the same period in the prior fiscal year in which several larger diamonds in the +10.8 special category were recovered, tendered, and sold,” the Company reported. “The decrease in overall sales volumes during the current quarter was the result of the timing of rough diamond tenders during the current quarter with the final tender not closing until October of 2019, after the fiscal quarter, and reduced processing volumes due to contract heavy equipment reliability issues experienced early in the second quarter.”   

Diamcor recorded operating expenses of C$403,929 for the period, as compared to C$521,429 incurred during the same period in the prior year. “The Company realised negative operating expenses during the second quarter for three reasons: reduced heavy equipment and fuel expenses as compared to the same period during the previous fiscal year; a management negotiated reduction of approximately C$320,000 to the payable associated with the Company’s previous heavy equipment contractor; and, finally, a significant increase in rough diamond inventory stock on hand at the end of the second fiscal quarter,” Diamcor explained.

The Company held rough diamond inventory worth C$918,183 at the end of the fiscal quarter. 

While the Company had anticipated reduced operating expenses during the quarter for the reasons elaborated upon above, it was also able to lower its expenses as a result of “the improving efficiencies being realised from its new operational management team and the enhanced operating practices and procedures being implemented”, Diamcor noted. 

The Company expects lower operating expenses during the Company’s third fiscal quarter ending December 31, 2019, as well.  

“General and administrative expenses for the period ended September 30, 2019 were C$793,864, a significant reduction when compared to C$949,329 realized in the same period during the prior year,” Diamcor stated.  “Other income and expenses remained relatively unchanged during the comparative periods.”