Canadian Junior Diamcor Achieves Strong Prices ($308/ct) at Latest Tender

Mining and Exploration
07/03/2019 09:47

Diamcor Mining, a publicly traded junior diamond mining company based in Canada and operating in South Africa, sold 1,220 carats of rough diamonds recovered from ongoing processing exercises performed at its Krone-Endora at Venetia Project in South Africa for US$376,000, achieving an average sale price of $308.06 per carat. This represents an increase of 76% compared to the company’s average price per carat of $176.16 realised on all rough diamonds tendered and sold to date, and included the sale of a 44 carat gem quality rough diamond. The junior's first sale of 2019 also achieved strong prices, averaging US$273.45 per carat from the sale of 1,408 carats. The miner tenders their rough diamonds at Koin International in Antwerp.

“We continue to be pleased with the results of our tenders, and this recent tender clearly demonstrates the positive impact that larger diamonds in the special category can have on our revenues,” said Diamcor chief executive Dean Taylor. “With rough diamond tenders performing well, our stated focus has been on increasing volumes, and the further advancement of the project.” The recent tender successes follow a third quarter (ended December 31, 2018) in which Diamcor saw a significant sales jump as production increased at Krone-Endora, resulting in a 76% increase in revenue to $1.4 million compared to US$864,546 in the same period in 2017. The company recorded a net loss of $648,222) - down from a deficit of $825,364) a year earlier - after lowering the cost of its operating activities. Revenue for the first nine months of the year fell 40% to US$2.3 million, while the net loss for that period remained flat.

Diamcor has well-established operational and production history in South Africa and has established a long-term strategic alliance and first right of refusal with Tiffany & Co. Canada, a subsidiary of world famous New York based Tiffany & Co., to purchase up to 100% of the future production of rough diamonds from the Krone-Endora at Venetia Project at then current prices to be determined by the parties on an ongoing basis.