Diamcor rough sold at soft price 2Q
Diamcor Mining reported a net income of $350,676 for the period ended September 30, 2019, a significant increase when compared to a net loss of $417,368 realized during the same period in the prior fiscal year.
During the second fiscal quarter ended September 30, 2019 the Company tendered and sold 3882.82 carats of rough diamonds, generating revenues of USD $569,059, which resulted in an average price of US $146 per carat. This is a decrease when compared to revenues of USD $726,846 and an average of US $278 per carat realized during the same period in the prior fiscal year in which several larger diamonds in the +10.8 special category were recovered, tendered, and sold.
The decrease in overall sales volumes during the current quarter was the result of the timing of rough diamond tenders during the current quarter with the final tender not closing until October of 2019, after the fiscal quarter, and reduced processing volumes due to contract heavy equipment reliability issues experienced early in the second quarter.
Operating expenses in the second fiscal quarter were ($403,929), as compared to $521,429 incurred during the same period in the prior year. The Company realized negative operating expenses during the second quarter for three reasons; reduced heavy equipment and fuel expenses as compared to the same period during the previous fiscal year, a management negotiated reduction of approximately $320,000 to the payable associated with the Company’s previous heavy equipment contractor and, finally, a significant increase in rough diamond inventory stock on hand at the end of the second fiscal quarter.
he Company recorded $918,183 in rough diamond inventory at the end of the fiscal quarter. The Company anticipated reduced operating expenses during the quarter for the reasons set forth, however the Company also realized lower expenses as a result of the improving efficiencies being realized from its new operational management team and the enhanced operating practices and procedures being implemented. Lower operating expenses are expected to continue into the Company’s third fiscal quarter ending December 31, 2019.
General and administrative expenses for the period ended September 30, 2019 were $793,864, a significant reduction when compared to $949,329 realized in the same period during the prior year. Other income and expenses remained relatively unchanged during the comparative periods.
