TORONTO (miningweekly.com) – Yellowknife-based Dominion Diamond Corp has allocated capital to a number of core development projects in Canada’s Northwest Territories and launched a share buyback programme, the company announced Wednesday.
Following a review, the board had determined to continue to focus on the Sable and Jay projects at its majority-owned Ekati and the A-21 pipe, at Diavik.
The company announced it would prioritise returning capital to shareholders, after activist investors led by Toronto-based K2 & Associates Investment Management in December bemoaned the company’s TSX-listed stock price losing about a third in 2015 on the back of perceived “misguided policies and missed opportunities”.
Dominion planned to launch a normal course issuer bid for about 7.2% of the currently issued and outstanding shares and 10% of the current public float, over a one-year period.
“We are very pleased to provide clear direction on our capital allocation strategy. Our business is generating consistent and reliable cash flows which are strong enough to both fund our development opportunities and support a share buyback programme, and in the future, an enhanced dividend strategy,” CEO Brendan Bell stated.
The company also announced that CFO Ron Cameron would step down, with VP group controller Cara Allaway taking over in the interim.
Dominion also said it would sell its noncore Toronto office building.
Meanwhile, trial production of Misery Main ore was competed early June, recovering 130 000 ct of diamonds that resulted in an average market price of $72/ct.
Dominion on Tuesday reported that as a result of a June 23 fire at its Ekati mine, it now expected to produce about 900 000 ct less diamonds from the operation this year. Damage from the incident was estimated at about C$25-million.