Mining Companies Reporting On Q2 Results

Mining and Exploration
26/07/2024 17:00

Mining company Burgundy Diamond Mines reports a recovery of 1.22 million carats during quarter 2 of 2024. This is a decrease by 10% in comparison with the same quarter previous year, which is in line with the decrease in the total volume of tonnes the company has processed (Q2-2023: 1.36 million). Burgundy sold 1.03 million carats and the sales happened over three sales events, including one fancy sale. The mining company achieved significant progress in several key areas this quarter. Despite suppressed diamond market prices, they remain optimistic as supply-demand tightens

Lucapa Diamond reported a strong performance for the quarter that ended June 30 despite facing operational hurdles (due to the extended wet season in Angola), with impressive results for their Lulo mine in Angola. The company, with mining operations active in Africa and Australia, recovered 13,200 carats during quarter 2 of 2024 (4,562 in the Lulo mine in Angola and 8,638 in the Mothae mine in Lesotho). This is a decrease of 19% in comparison with the same quarter the previous year. The company sold 12,966 carats during Q2 (a 15% decrease from Q2 2023).

Canadian miner Mountain Province Diamonds brought 1,318,680 carats to the surface during Q2 of 2024, which is a decrease of 2% in comparison with last year's Q2. (Q2 2023: 1,339,196 carats). During the second quarter, 557,361 carats were sold for total proceeds of $56.8 million (US$41.5 million), resulting in an average price of $102 per carat (US$74 per carat).

De Beers sees the total volume of recovered carats decreasing by 15% compared to Q2 of 2023. 6,4 million carats were recovered during this year's second quarter. According to the company, the drop was driven by lower production at the Jwaneng mine, where short-term changes were intentionally made to the plant feed mix to work through existing surface stockpiles. De Beers' 2024 production guidance, lowered in the previous quarter, remains at 26-29 million carats. Because of the congested midstream and an expected prolonged recovery, De Beers said it seeks to reduce production further to save money.

Rio Tinto's Diavik mine's production fell 28% to 702,000 carats in Q2 2024 (from 970,000 carats in the second quarter of 2023). This 28% reduction is primarily attributed to a tragic plane crash earlier in the year and the cessation of A21 open-pit mining in Q3 2023. The Australian mining giant reported a 15 per cent increase in overall profits across all divisions to $5.8bn for the six months to 30 June, but its diamond operation suffered a $65m loss. During the same six months of 2023, it made a $44m profit.

 

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