Dominion Diamond Corporation  yesterday reported sales for second fiscal quarter 2017 (May through July, 2016) of US$ 160 million. This marked a decrease of  23.7% over the Q2 FY 2016 sales worth US$ 209.7 million.  Total H1 2017 sales amounted to US$ 338.2 million.

“Sales in the second quarter were lower than the prior year primarily due to a high proportion of lower value goods from the Misery Satellites available for sale in the quarter,” the Company explained.

Sales from the Ekati Diamond Mine (100% basis) amounted to US$  83.3 million for the period  (US $ 188.4 million for H1 fiscal 2017); and from the Diavik Mine sales for Q2 2017 amounted to US$ 76.7 million (US $ 149.8 million for H1 fiscal 2017). 

In terms of caratage, a total of 668,000 carats were sold from Ekati (100% basis) in Q2 2017   (2,213,000 carats in H1 2017); while from Diavik (40% basis) 673,000 carats were sold in Q2 2017 (1,727,000 carats in H1 2017). Total sales amounted to 1,341,000 carats for Q2 2017, and 3,940,000 carats for H1 2017.

“Excluded from the Ekati sales recorded are carats produced and sold from the processing of material during a pre-commercial production period,” the Company noted. “During the second quarter for fiscal 2017, the Company sold an estimated 116,000 carats of such production for estimated proceeds of US$ 8.3 million. For the six months ended July 31, 2016, the Company sold an estimated 149,000 carats of such production for estimated proceeds of US$ 12.8 million.”

During the quarter in reference, three rough diamond sales were held; and   two rough diamond sales are planned for the third fiscal quarter of 2017.

Production at the Ekati Diamond Mine remained largely flat y-o-y, albeit from a lower quantum of ore processed. The Company  reported that  0.9 million carats were recovered at Ekati in Q2 fiscal 2017 from 0.6 million tonnes of ore processed; compared to  0.9 million carats recovered from 1.0 million tonnes processed in Q2 fiscal 2016.

“During the quarter, tonnage processed was significantly reduced as a result of the fire at the Ekati process plant that occurred on June 23, 2016 and the subsequent processing shutdown,” the Company explained.

Also, while mining operations continued at the “higher value” Koala underground and Misery Main open pit; they have “been paused” at the “lower value” Pigeon and Lynx open pits as a cost reduction measure, Dominion stated.

The Company, which has been in the process of hiving off its downtown Toronto office building for some time now,  announced that it  has entered into a “binding agreement”  for the same at a value of  approximately CAD 84.8 million.

“The transaction is expected to close during the third fiscal quarter and is subject to customary closing conditions,” Dominion explained.