|Dominion Diamond Corporation (Dominion) has published its second quarter operational and financial results for the three and six months ending July 31, 2017, (Q2 fiscal 2018 and H1 fiscal 2018) reporting sales of US$239.8 million for Q2, a significant improvement over the previous fiscal year's Q2 sales of $160 million.
A total of 3.64 million carats were sold in the quarter, more than double the 1.34 million carats sold in Q2 fiscal 2017. Average per carat value was down at $66 per carat compared with $119 in Q2 fiscal 2017. This reflects the improved demand for smaller diamonds and a higher proportion of diamonds sold from the Misery Main pipe at the Ekati mine, which has a relatively low price per carat, says the Dominion announcement.
The company notes that this rebound in demand for lower-value diamonds has contributed to the improvement in financial results, with adjusted EBITDA of US$115.2 million and free cash flow of US$42.8 million in Q2 fiscal 2018, compared to US$38.6 million and (US$20.9) million, respectively, in Q2 fiscal 2017.
Net income for the fiscal quarter is reported at US$31.1 million, compared with a loss of US$37.9 million in Q2 fiscal 2017.
Commenting on the results, Dominion's Chairman Jim Gowans says, "As expected, we continue to see the benefit of our transition to high-value production at Ekati, and stable performance at Diavik."Continues Gowans: "The transaction that we announced in July with The Washington Companies will support continued mine development and operation, benefitting Dominion's stakeholders over the long-term."