Burgundy, the new owners of Canada’s Ekati diamond mine, reported a 27% decrease in revenue for the second quarter of 2024 compared to the same period last year, dropping from $145 million to $106 million.
During the three months ending June 30, Burgundy sold 1,030,488 carats, which is a 23% decrease from the 1,338,942 carats sold in Q2 2023. The average price per carat also slightly declined from $108 to $103. Meanwhile, diamond inventories rose by 5% to 1.32 million carats.
Despite these figures, the Australia-based mining company expressed cautious optimism in its Quarterly Activities Report. “Based on discussions with industry experts, we anticipate diamond prices will soon rise as supply and demand balance tightens,” the report stated.
The company also welcomed De Beers’ announcement of a new marketing campaign, the first in three decades, noting historically positive impacts on the diamond sector.
Burgundy acquired the Ekati mine, located 125 miles south of the Arctic Circle in Northwest Territories, last June for $136 million from the Arctic Canadian Diamond Company. The company intends to extend the mine’s lifespan by developing underground operations.
In the June quarter, Burgundy processed fewer tonnes, marking a 9% decline year-on-year, largely due to additional maintenance required during a major annual plant shutdown.
