Rio Tinto's diamond division recorded a $21 million loss for FT 2019 as its revenues fell 11% to $619 million from $695 million a year earlier, according to the company's Annual Results released on Wednesday. Earnings before interest, tax, depreciation and amortization (EBITDA) tumbled by 50% to $151 million from $301 million in 2018.
Rio Tinto saw its diamond output fall in the third quarter of 2019 (three months ended September 30, 2019), citing lower carat grades from its Argyle mine in Australia and lower ore availability at the Diavik mine in Canada. The multinational mining group reported a 7% decline in diamonds produced during the quarter and a 9% drop over the first nine months of the year.
Rio Tinto's rough diamond production fell by 10% during the first half of the year despite improved output in the second quarter compared to the first three months of 2019. Production at its Argyle mine in Australia actually increased by 18% compared to Q1, but the nearly 3.3 million carats recovered in Q2 was 5% fewer than during the same period in 2018 due to lower recovered grade, partially offset by stronger mining rates. Output at the Argyle mine reached 6.1 million carats in H1 2019, a 13% decline compared to the same period last year.
Rio Tinto's diamond production in Q1 2019 declined by a total of 18% on an annual basis from its two mining operations in Australia and Canada due to lower recovered grade. The lower grade particularly affected diamond output at its 100% owned Argyle mine in Australia, where production fell by 22% year-over-year and 13% from the final quarter of 2018 to just under 2.8 million carats.
Rio Tinto's diamond production for the year fell by 15% to 18.4 million carats from 21.6 million carats in 2017, as production at the Argyle mine in 2018 fell by 18% compared to 2017, when production was enhanced by the processing of higher grade alluvial tailings. The fourth quarter in particular put a drag on the annual figures, as the 3.2 million carats unearthed represented a 48% decline from Q4 2017 - albeit against a high base of 7.21 million carats - and a 16% decline from last quarter.
Rio Tinto and Dominion Diamond Mines have announced the recovery of the largest known gem-quality diamond ever found in North America. The 552-carat yellow diamond was unearthed in October at the Diavik Diamond Mine, approximately 135 miles south of the Arctic Circle in Canada’s Northwest Territories. Measuring around 3cm by 5.5cm, it is said to be about the size of a chicken egg. "A diamond of this size is completely unexpected for this part of the world and marks a true milestone for diamond mining in North America and Canadamark diamonds overall," the companies said in a statement.
Rio Tinto's carat production in Q3 2018 at the Argyle as well as Diavik mines fell on a year-over-year basis, though production for the year thus far has kept pace with the first nine months of 2017. Production during the three months ending September 30 fell by over 17% to 4.9 million carats from 5.9 million carats, driven by a 19% decline at its 100-percent owned Argyle mine in Australia. Total output from the two mines is down by 2% to 14.1 million carats for the year to date.
Rio Tinto and Dominion Diamond Mines have revealed three of the finest large rough diamonds from their Diavik diamond mine in Canada, which will be showcased in Antwerp and Israel before being tendered to diamond specialists from around the world. The three rough diamonds, collectively named “The Diavik Stars of the Arctic”, will highlight a rough diamond tender of 'specials' (diamonds weighing more than 10.8 carats) before bids close on October 25.
Rio Tinto yesterday celebrated the opening of a fourth diamond pipe, known as A21, at the remote subarctic Diavik Diamond Mine in the Northwest Territories of Canada, the miner announced in a press release. The new open pit pipe will provide an important source of incremental supply over the next four years to sustain production levels at the Rio Tinto operated mine. The A21 pipe is located adjacent to Diavik’s existing mining operations at Lac de Gras.
Rio Tinto reports rough diamond output at its Argyle Mine in Australia nearly hit 3.5 million carats for the second straight quarter in 2018 (3.48 million carats in Q2, 3.5 million carats in Q1), marking an 8% increase over output in the second quarter of 2017 and continuing the gains recorded in the first quarter. The mining giant has now topped 7 million carats produced at Argyle in the first half of 2018, a 13% increase over the first half of 2017. Rio Tinto attributes the increase over Q2 2017 to an increase in tons processed following improved plant availability.
Rio Tinto reports rough diamond output at its Argyle Mine in Australia topped 3.5 million carats in Q1 2018, representing an 18% increase over output in the first quarter of last year, but a massive 42% decline compared to the 6.1 million carats recovered in Q4 2017. The mining giant attributes the increase over Q1 2017 to relatively fewer weather disruptions and the additional processing of higher grade alluvial tailings.
Rio Tinto rode the wave of higher commodity prices and saw results from its cost cutting drive to record a 90% increase in net profit to $8.8 billion in 2017, and their diamond operations got in on the party, with profits climbing 96% to $92 million. Revenue jumped 15% to $706 million from $613 million, as demand for rough diamonds heated up following the normalization of the Indian market post-demonitization - the currency shift the government initiated in November 2016. Earnings before interest, tax, depreciation and amortization (EBITDA) grew 20% to $287 million.
On the back of a fourth-quarter push in diamond production that increased 58% year-on-year and 21% compared to Q3 2017, Rio Tinto ended the year 2017 with a 20% rise in rough diamond production to 21.63 million carats from 17.95 million carats in 2016. In Q4 alone, Rio Tinto unearthed 7.21 million of those 21.63 million carats, a tremendous increase over the 4.57 million carats extracted in the same period a year earlier. Rio Tinto is forecasting 2018 diamond production at 17 to 20 million carats.
Dominion Diamond Corporation reported their financial and operational results for the second quarter fiscal 2018 which ended on July 31, 2017. The results were in line with expectations, consolidated carats produced increased 72% to 2.6 million carats in the second quarter from 1.5 million carats for the same period a year earlier due to higher tonnes processed and a focus on high-grade Misery Main ore at the Ekati mine, with steady performance at the Diavik Diamond Mine.
Rio Tinto reports rough diamond output at its Argyle Mine in Australia reached 3.2 million carats in Q2 2017, representing a 7% increase over output in the first quarter of the year, but an 8% decline compared to the 3.5 million carats recovered in Q2 2017. For the first half of 2017, production fell 9% to 6.2 million carats from 6.9 million carats in the first half last year. The company attributes the decline to lower ore volumes processed following wet weather and additional maintenance required in the second quarter of this year.
After months of speculation and a rejected takeover attempt, Canadian miner Dominion Diamond Corporation has entered into an arrangement agreement with The Washington Companies to acquire all of Dominion’s outstanding common shares for US$14.25 per share in cash, or a total equity value of approximately US$1.2 billion. The transaction represents a 44 percent premium to Dominion’s unaffected share price of US$9.92 on March 17, 2017. Dominion rejected Washington's initial advance of $1.1 billion, or $13.50 a share last March, calling it "opportunistic" and saying it undervalued the company.
Against the background of a bear market for iron ore in full tilt, a 43-day strike at the world's largest copper mine causing its output to fall 37% and the Group edging closer to an exit from thermal coal after winning approval from Australia’s foreign investment regulator to sell the bulk of its mines for $2.45 billion, the Rio Tinto Group's Q1 diamond output dropped 8% year on year to 4.152 million carats.
Dominion Diamond Corporation reports strong growth in gross margins, adjusted EBITDA and net income of $5.6 million - despite a 27% decline in sales - in Q4 of the fiscal year ending January 31, 2017. This was attributable to ramp up of high value production at Ekati and steady performance at Diavik. The sale, late in the quarter, of Ekati mine goods from higher value Misery Main open pit and Koala underground ore processed in late Q3 fiscal 2017, together with higher processing volumes at the Diavik mine in the same period, paved the way for their stronger consolidated gross margin.
Dominion Diamond Corporation on Friday March 31 filed an updated technical report for the Diavik Diamond Mine that extends the life of the mine two years and raises production estimates going forward. The mine in the Northwest Territories, in which Dominion has a 40% interest and Rio Tinto plc has a 60% interest and operates the mine through DDMI (Diavik Diamond Mines Inc.) will continue to produce until 2025 instead of ending its active life in 2023.
Rio Tinto press release: Rio Tinto has appointed Patrick Boitumelo as President and Chief operating officer, Diavik Diamond Mines. "Patrick has extensive operational, stakeholder management and corporate strategy experience at a senior level across a number of businesses in the mining industry, including diamonds, soda ash and salts, nickel, iron ore, copper and copper by-products. Most recently he was general manager of engineering and projects at Kennecott Utah Copper in Salt Lake City, Utah, USA."
Dominion Diamond Corporation today (March 17) released its guidance for sales, Adjusted EBITDA, unit operating costs, and capital and exploration expenditures for fiscal 2018 (ending January 31, 2018); they expect sales to be between $875 and $975 million, an increase of 62% compared to fiscal 2017 sales, assuming the mid-point of fiscal 2018 guidance is achieved. They reaffirmed their production guidance released earlier this year for the Ekati Diamond Mine and Diavik Diamond Mine.
Dominion Diamonds has announced that sales of Ekati Diamond Mine and Diavik Diamond Mine diamonds fell 27% in Q4 2017 (November 2016 through January 2017) and 21% overall in FY 2017, despite the quantity of diamonds sold increasing 24% in Q4 and 61% for the year. It has also provided Q4 production results from its Ekati Mine, where carat production increased by 93% compared to the same period in the prior year due to the positive impact of processing of a large proportion of high grade Misery ore.
Last year Rio Tinto’s diamond revenue slid 12%, leading them to review their plans to extend the life of the Argyle diamond mine, considering the global demand for rough had otherwise strengthened, writes The West Australian. Rio Tinto spent $US2.5 billion expanding the Argyle mine below ground with an expected lifespan reaching 2021. Should they decide not to continue with the planned underground extension, the mine’s closure could come considerably sooner. They are yet to announce whether they will continue with the second stage of the underground block cave at the East Kimberley mine.
Dominion Diamond Corp., the world’s third largest producer of rough diamonds, announced CEO Brendan Bell will be stepping down. In a statement Bell said this decision was based on the Canadian company’s intended relocation of the corporate offices to Calgary.
Rio Tinto posted strong fourth quarter production in its diamond division, with increases at its Argyle Mine in Australia as well as the Diavik Mine in NWT Canada, in which Rio Tinto owns a 60 percent interest (Dominion Diamond 40%). At Argyle, Rio Tinto produced 3.6 million carats in Q4, a 6% increase over Q4 production in 2015. For the year 2016, carat production was four per cent higher than 2015 following the ramp-up of the underground mine, with higher ore throughput partially offset by a lower recovered grade. Total 2016 production at Argyle was just under 14 million carats.
Dominion Diamond Corp. reports that production from the Diavik Diamond Mine for the fourth calendar quarter of 2016 ended 10% higher than in the same quarter of the prior year, reflecting higher processing volumes that were partly offset by lower recovered grade. Under a joint arrangement, Rio Tinto operates the mine and Dominion Diamond pays 40 percent of the mine’s operating and capital costs while receiving 40 percent of the mine’s diamond output.
Dominion Diamond Corporation reported that its third quarter fiscal 2017 quarter (three months ended Oct. 31, 2016) gross margin amounted to $22.2 million, resulting in an operating loss of $9.1 million versus an operating profit of $9.5 million a year ago. As previously reported, the company's diamond sales for the third quarter were $102.7 million from the sale of 1.2 million carats.
Dominion Diamond Corporation reports that third fiscal quarter sales 2017 (three monthds ended Oct. 31, 2016) of rough diamonds from the Ekati Diamond Mine and Diavik Diamond Mine fell 29% to $102.7 million from $145.0 million despite the total volume of carats sold increasing by 56% to 1.2 million carats from 0.8 million carats.
The Foxfire diamond is the largest known uncut, gem-quality diamond mined in North America. The diamond will be on display for three months at the Smithsonian’s National Museum of Natural History, Nov. 17 through Feb. 16, 2017. This will be the first time it has been made available to the public. Weighing more than 187 carats, the Foxfire diamond will be presented alongside the renowned Hope diamond in the Harry Winston Gallery.
Rio Tinto has released its third quarter production results, reporting that diamond production increased 3.4 percent to 4.4 million carats in the three months ended September 30. The company’s share of production at the Diavik Mine in Canada jumped 22% to 927,000 carats (Rio Tinto holds 60 percent of Diavik, the remainder of which is held by Dominion Diamond Corporation). Meanwhile, production at the 100%-owned Argyle mine in Western Australia fell 0.6% to 3.5 million carats.
Mining company Rio Tinto, a leading producer of smaller rough diamonds for the Indian market, aims to focus on the affordable diamond jewelry sector in India, according to a company official. "Affordable diamond jewelry has an average ticket price of Rs. 35,000 ($520)," said Vikram Merchant, director of Rio Tinto's India representative office. "This segment roughly constitutes 50 percent of the diamond jewelry industry in India."
Canadian miner Dominion Diamond has reported a loss of $37.9 million for Q2 2017 ended July 31 2016, increasing their first half losses to $73.8 million. Total sales for the quarter fell nearly 24% year on year to $160 million from $209.7 million, while revenues for the first half fell 15% compared to the first half of 2015. The Toronto-based company said it had a loss of 39 cents per share.
Canadian diamond miner Dominion Diamond Corporation has appointed, effective as of September 10, Matthew Quinlan as Chief Financial Officer, reporting to the Chief Executive Officer. Quinlan has over 15 years of experience in corporate finance, investment banking and financial accounting, including extensive experience in providing financing and strategic advice to companies in the global mining industry.
Despite its decision to withdraw from the Bunder project in India, Rio Tinto Diamonds says it will remain with the diamond business. “We firmly believe the fundamentals of the global diamonds market remain robust,” Simon Farry, vice president for sales and marketing for copper and diamonds said in a statement to JCK. “The decision to withdraw from Bunder was based on commercial considerations specific to the project as part of Rio Tinto’s ongoing efforts to conserve cash and reduce costs right across our business.”
Dominion Diamond Corporation reports that fiscal 2017 second quarter diamond sales were $160.0 million, down from $209.7 million a year before from its Ekati and Diavik diamond mines. At Ekati, production was 0.9 million carats from 0.6 million tons of ore processed versus 0.9 million carats recovered from 1.0 million tons processed a year before. Sales in the second quarter were lower than the prior year primarily due to a high proportion of lower value goods from the Misery Satellites available for sale in the quarter.
Rio Tinto Diamonds is to provide an audited mine-to-polished chain of custody for stones from its Argyle mine this month, while a Canadian Diamonds program covering its 60% share of production from the Diavik mine in the North West Territories will start later this year, writes Rob Bates in JCK Online. The programs have two aims, said Bruno Sané, Rio Tinto Diamonds’ general manager of marketing. For the trade, it guarantees the diamonds are not lab grown: “The screening technology today is less reliable with small and brown diamonds. The browns are usually rejected as type IIs.
This week's news that Arctic Star Exploration Corp. has acquired a 100 percent interest in mineral claims comprising 40,831 hectares in the Athabasca Basin, Saskatchewan - the "Diamond Dunes Project" - only two months after De Beers announced a US$15.8 million (C$20.4 million) option with CanAlaska Uran
Rio Tinto reports that production at its Argyle mine in Australia was three percent higher in the second quarter compared to the corresponding period in 2015 following a continuing ramp-up of underground work which resulted in higher ore volumes processed which was partially offset by lower grades. Production rose to 3.489 million carats.
Dominion Diamond Corp reports that its first quarter diamond sales fell to $178.3 million from $187.7 million in the year-earlier quarter. Carat production in the first quarter was 34% higher compared with the Q1 2016. During the period, the Ekati Diamond Mine recovered 1.1 million carats from 1.0 million tonnes of ore processed compared with 0.8 million carats from 0.9 million tonnes a year before. The miner reported that it held two rough diamond sales during the quarter.
Rio Tinto has announced that its Diavik Diamond Mine in Canada has produced 100 million carats of rough diamonds since it opened in 2003, reports JCK. The mine is a joint venture between Rio Tinto (60%) and Dominion Diamond Corp. (40%), but is operated wholly by Rio Tinto. The Diavik Diamond Mine is Canada’s largest diamond mine in terms of carat production.