VANCOUVER (miningweekly.com) – The TSX-listed stock of Canada’s largest diamond producer Dominion Diamond Corp on Friday gained 12.33% to C$13.21, after the company announced late on Thursday that it expects fiscal 2018 sales to be between $875-million and $975-million, an increase of 62% over fiscal 2017 sales.
The Yellowknife, Northwest Territories-based miner said the improved outlook is being driven by high-value output at the Ekati mine and a solid performance at its Diavik mine.
Top line earnings as defined by the adjusted earnings before interest, taxes, depreciation and amortisation, are forecast to be between $475-million and $560-million, reflecting a high-margin ore mix, combined with ongoing cost containment and efficiency initiatives, the company said.
The average price per carat sold is expected to range from $70/ct to $90/ct. The cash cost of production is expected to range between $70/t and $80/t processed and between $35/ct and $40/ct produced.
Dominion noted that the diamond market continues to recover from the impact of demonetisation in India. The guidance for fiscal 2018 foresees the sale of a higher volume of lower-value diamonds that were previously held back from sale owing to the weaker market conditions following the demonetisation in India. This is expected to affect the average price per carat sold, as well as the number of carats sold.