Diamcor Q3 revenue of US$ 1.4mn
Diamcor Mining announces the results of tenders and sales of rough diamonds completed in the Company’s third fiscal quarter (Q3) ending December 31, 2019. Subsequent to the completion of a third and final tender for the period, the Company increased the total rough diamonds delivered and sold during the period to 13,218 carats, generating gross revenues of USD $1,412,117, which resulted in an average price of USD $106.83 per carat for the period.
This represents a significant increase when compared to the sale of 3,759.62 carats, generating gross revenues of USD $560,059 in the Company’s previous interim period ended September 30, 2019. A portion of the increase in the overall volume of carats sold during the quarter ended December 31, 2019 was attributable to the increased level of rough diamond inventory held as stock on hand at September 30, 2019, and the timing of the initial rough diamond tender completed early in October of 2019.
As of December 31, 2019, the Company had delivered ~1,500 additional carats of rough diamonds which will be tendered and sold in the current fiscal quarter ending March 31, 2020. The lower dollar per carat achieved during the period ending December 31, 2019 was expected due to the significantly higher percentage of smaller, lower quality rough diamonds being recovered as part of the tailings-retreatment exercises being performed at the Company’s Krone-Endora at Venetia Project.
These exercises were aimed at allowing the Company’s new operational team to identify and correct the issues associated with certain recovery equipment deficiencies, and the Company believes the refinements completed will have a positive impact on recoveries moving forward for the long-term. Operating costs were also significantly reduced during the period ended December 31, 2019, as costs normally associated with quarrying operations, heavy equipment, and fuel consumption were not incurred during the period.
The Company plans to conclude the current tailings re-treatment exercises in conjunction with the planned delivery of a new, larger heavy equipment fleet to the Project prior to the end of January 2020. Once deployed, operations and the recovery of material from the Project’s quarry will resume at increased levels, and the average dollar per carat achieved is expected to return to historically higher levels given that all size fractions of material will again be processed.
The deployment of the larger heavy equipment fleet is aimed at supporting increased processing volumes at lower operating costs due to improvements in reliability, cycle times and fuel efficiencies. Additional details on the deployment of this new equipment and mining/quarrying operations at the Project will be provided by the Company in the coming weeks.
