Dominion Diamond Corporation’s third quarter results were dismal, with a fire at its Ekati mine creating $22.4 million in fixed operating costs.
In the third quarter (ended October 31), sales slumped 29 per cent to $102.7 million. This caused an operating loss of $9.1 million, as compared to last year’s operating profit of $9.5 million.
After a fire in June of this year, the company shut the Ekati processing plant. This resulted in a 38 per cent sales drop to $54.8 million. While operations resumed on September 21, a carryover of diamonds with a lower average value from both Ekati and the Diavik mines decreased total revenue.
Despite this, the company’s net income grew to $28.8 million from $7.2 million a year prior due to the sale of the company’s Toronto office.
Author: Canadian Jeweller Magazine Staff
Canadian Jeweller Magazine Staff is the shared byline for reporting filed by the magazine's editorial desk. Founded in 1879, Canadian Jeweller is the longest running jewellery business publication in Canada, covering market reporting, retail strategy, watches, diamonds, coloured gemstones and the commerce of the Canadian jewellery trade. Work published under this byline is edited and verified by the Canadian Jeweller editorial team in Toronto.
