Fire causes operating loss for Dominion Diamond

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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.

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