Burgundy Diamond Mines reported significant financial growth and operational achievements in Q1 2024, positioning itself strongly in the global diamond market and reflecting the potential of its Ekati diamond mine.
Burgundy’s Q1 2024 EBITDA reached $26 million, marking a 49% increase from the previous year. The company also reported record revenues of $117 million. These figures underscore the impact of Burgundy’s strategic focus on operational efficiency and market expansion since acquiring Arctic Canadian Diamond Company in June 2023.
The Ekati diamond mine produced 1.15 million carats in Q1 2024, a slight 3% decrease from Q1 2023. However, the company sold 1.32 million carats, a substantial 65% increase from the previous year. The average grade fell to 1.12 from 1.23, indicating a 9% decline, but the overall sales volume and revenue growth suggest a strong demand for Ekati diamonds.
Despite a broad softening in the polished diamond market, Burgundy’s Ekati diamonds have maintained high buyer interest and sell-through rates. Burgundy attributed this resilience to the high quality and Canadian provenance of Ekati diamonds, which are highly valued in the market. Burgundy’s vertically integrated business model, which captures margins across the full diamond value chain, has also supported strong sales.
Burgundy Diamond Mines CEO Kim Truter highlighted the importance of global market access for Burgundy’s long-term success. “The more access we have to the global market, the more bids we receive from clients looking for a reliable, long-term, high-quality product from an unwavering ethical standard – it’s that simple. In five years’ time, we will potentially be the only producer in the largest diamond-consuming continent, North America.”