Canada-headquartered Diamcor Mining’s focus during the interim period ended December 31, continued to be on managing costs and optimising operational hours to minimise the effects of loadshedding in South Africa by State-owned utility Eskom, with continued refinements to processing plants and equipment aimed at sustaining higher processing volumes for the long term.
This was noted by the company in its management discussion and analysis for the interim period.
During the interim quarter, Diamcor tendered and sold 8 327.58 ct of rough diamonds, generating revenue of $2.05-million, resulting in an average price of $246.68/ct.
The company recorded a net loss of $386 619, resulting in a $0-a-share gain, compared with the $0.01 loss in 2021.
Diamcor says it continued to advance several objectives aimed at reducing the impact of future issues with national power supply in South Africa for the long term.
The management of operational salary and wages expenses, variable operational costs and historical fixed costs continued to be a focus during the period.
In total, ongoing trial mining exercises at the company’s Krone-Endora at Venetia project from inception through to December 31, 2022, have resulted in the incidental recovery, tender and sale of 194 969.18 ct of rough diamonds generating revenue of $36.25-million, resulting in an average price of $185.91/ct.
Diamcor generated gross revenues of $2.48-million from operations in the interim period, compared with $1.32-million for the same period in the previous year.
The company realised $7 592 from interest and other income during the period.
Diamcor says its most significant operating expense continued to be attributable to heavy equipment and diesel fuel costs to support ongoing trial mining exercises.
During the interim period, it expended considerable effort on additional maintenance, the generation of alternative power from gensets, and shift management in an effort to minimise the effects of the increased loadshedding in South Africa.
This resulted in lower recoveries towards the later part of the interim period, resulting in a reduced stock on hand of rough diamonds at the end of the period.
Combined, this resulted in an increase in operating expenses to $1.86-million, compared with $1.37-million for the same period in the previous year.