Dominion’s Sales get a Boost from Small-Stone Demand
In the second fiscal quarter, a demand for smaller goods returned, boosted Dominion Diamond Corporation’s rough-diamond sales by 50 per cent to $239.8 million. During the quarter, ending July 31, sales volume more than doubled to 3.6 million carats from 1.3 million carats a year ago, Dominion said. Due to the improved demand for smaller diamonds and a higher proportion of stones sold from the Ekati mine’s relatively low-value Misery Main pipe, the average price fell to $66 per carat from $119 per carat.
Having seen a loss of $37.9 million around this time last year, the company recorded a profit of $31.1 million for the three months. Dominion Corp. noted the demand for smaller diamonds following a decline in that category from last year due to the Indian government’s demonetization program in
November. Sales rose 33 per cent to $450.8 million during the first fiscal quarter this year, and the miner made a profit of $23.2 million versus a loss of $43.2 million a year ago.
Dominion Diamond Corporation owns the Ekati mine and 40 per cent of the Diavik mine, both in Canada. The Washington Companies in July agreed to acquire the rough producer for $1.2 million, with the deal expected to close in the fourth quarter.