Diamcor Sells $1.85M Rough Diamonds in Q1, Stronger Prices on Fewer Carats

Mining and Exploration
10/07/2017 15:57

Canadian junior miner Diamcor Mining Inc. sold 8,318.82 carats of rough diamonds for US$1,851,122.55 ($222.52 avg/ct) in fiscal Q1, ending June 30, 2017, from the newly expanded facilities at the company’s Krone-Endora at Venetia Project in South Africa. This represents a ~38% decrease compared to the 13,384.72 carats tendered and sold in the first fiscal quarter ending June 30, 2016, but only a 3% decrease in revenues compared to the $1,905,978.44 realized during the same period in the prior fiscal year. The average dollar per carat of USD $222.52, represents a 56% increase as compared to an average dollar per carat of USD $142.40. 

Diamcor held three tenders in Q1: the initial sale of 2,900.62 carats of rough diamonds earned gross proceeds of $810,106.26, resulting in an average price of $279.29 per carat; the second sale of 3,265.07 carats of rough diamonds completed in May 2017 earned $702,635.70, resulting in an average price of $215.20 per carat; at the third and final sale for the quarter completed in June 2017, the company sold 2,153.13 carats of rough diamonds for gross proceeds of $338,380.59, resulting in an average price of $157.16 per carat. The diamonds sold during the period were from the processing of material being completed as part of the testing, commissioning, and calibration work underway at the Company’s Krone-Endora at Venetia project; the company explained that the reduction in carats sold was due to limited processing as a result of the testing and calibration work, which, "continued to progress as planned during the quarter, and overall increases in processing volumes and reliability are expected moving forward." They add that recovery of all rough diamonds to date are incidental to the ongoing commissioning and testing exercises performed at the Project.