TSX-V-listed diamond miner Diamcor Mining, which operates the Krone-Endora at Venetia mine in Limpopo, South Africa, tendered and sold 25% more rough diamonds, at 5 441.88 ct, in the fourth quarter ended December 31, 2021, compared with the third quarter.
This generated $1.07-million in revenue for the fourth quarter, resulting in an average price of $197.50/ct.
CEO Dean Taylor says recent tenders and sales have shown strong demand and price increases in various categories, with the company believing this trend has the potential to continue in the coming months as considerable quantities of diamonds normally supplied by Russia may be impacted as a result of that country’s invasion of Ukraine and resulting economic sanctions imposed on it.
During the fourth quarter, Diamcor focussed on maintaining reduced costs and efforts aimed at increasing operational hours and processing volume capabilities for the long term.
In addition, the miner completed the first phase of its planned expansions ahead of schedule during the period, and by the end of December, had shifted its focus to the advancement of the second phase, which remains on track to be completed by June 30.
Taylor says Diamcor remains optimistic that the expansion efforts, both completed and under way, will enable the company to be well-positioned at a time when rough diamond supplies continue to be constrained.
Meanwhile, careful management of operational and wage expenses, as well as variable operational costs and historical fixed costs, continued throughout the period in light of the continued restrictions associated with the Covid-19 pandemic.
Diamcor posted a net loss of $939 916 for the quarter under review – a 34% year-on-year improvement.
It also reduced its debt by C$3.1-million.