Dominion Diamond Corp Reports Plunging Diamond Sales

Mining and Exploration
24/02/2016 13:35

Dominion Diamond Corp's full fiscal year diamond sales plunged to $720.6 million from $915.7 million in the year-earlier period, a decline of more than 21%. For its fourth quarter, sales were $178.1 million, a sharp decrease from the $240.6 million figure for the year-before quarter. The miner plans to produce 5.5 million carats from the processing of 3.9 million tons of ore at the Ekati mine during the fiscal 2017 year, and announced that production at Ekati during the fourth quarter of 2015 increased by 42 percent.

In comments on the state of the diamond markets, the firm reported: "U.S. diamond retail sales were positive in the important fourth quarter. In China, consumers continued to buy diamond jewelry, but the previous overstocking by retailers meant much lower replenishment of inventory during the period. Prices were lowered by 5% in the company’s January sale in line with the market, but polished prices in many categories have firmed as the U.S. looks to restock and the shortage of rough in the cutting centers has resulted in an improvement in some areas of rough pricing being seen at the company’s tender in early February in India."