Diamcor Mining, a publicly-traded junior diamond mining company with a strategic alliance and first right of refusal with Tiffany & Co. Canada, reported a 22% decline in rough diamond sales in the second fiscal quarter due to the sale of a higher percentage of smaller, lower-quality rough diamonds than in the same period last year.
The junior miner sold 3,760 carats at Koin tender house in Antwerp during the quarter for $569,059, representing an average price per carat of just over $151 per carat. The sale included a 20.66-carat gem-quality rough. In Q2 2018, Diamcor sold fewer carats (2,606) for higher revenues ($726,588) due to a high average price per carat of $279, bolstered by the sale of three special-sized stones instead of just one in Q2 this year. Diamcor recovered an additional 4,825 carats, including a 28.45 carats stone, which will be sold at tender in Antwerp in the coming weeks.
Diamcor attributes the improvement in the volume of rough diamonds tendered, sold, and delivered to the success of current exercises being performed by their new operational management team at the Krone-Endora at Venetia Project in South Africa. These exercises included the evaluation of historical processing practices and procedures at the Project and the processing of historical tailing and previously stockpiled material to gather important data. The processing of previously processed tailing and stockpiles is what led to the recovery of the higher percentage of smaller and lower-quality rough, and this, together with current price weaknesses in certain categories of the rough diamond market, contributed to the lower average price per carat average achieved. “However,”, they “anticipate the average price per carat will improve to historical levels as the processing of newly mined material begins through the now refined process facilities.”
Diamcor CEO Mr. Dean Taylor also noted that the initial results of their operational evaluation efforts had identified several past deficiencies and other potential enhancements that should be implemented into new standard operating practices and procedures. With these deficiencies identified and corrected, “We believe the current efforts, focus, and results will benefit the Project in a meaningful way moving forward.”