Burgundy Diamond Mines provided its financial and operating results for the fourth quarter (Q4 2023). Burgundy continues to improve production and performance at Ekati mine, in Canada’s Northwest Territories, with more efficient mining operations and highest ore processing in 10 years, including revenues of $166 million, EBITDA of $60 million (unaudited) and 1.2 million carats recovered.
“Burgundy’s transformational acquisition of Ekati in July 2023 has delivered a positive and exciting period for the company with increased revenue, diamond sales, tonnes processed, and carats recovered at Ekati during the fourth quarter of 2023,” said Kim Truter, Burgundy Diamond Mines Chief Executive Officer and Managing Director.
Fourth quarter highlights said,1: Revenue: $166 million, up 37% (Q4 2022: $121 million), 2: Carats recovered: 1.2 million, up 19% (Q4 2022: 1.0 million), including a 75-carat rough diamond, 3: Carats sold: 1.8 million, up 41% (Q4 2022: 1.3 million)
Despite some market softening in the sales of cut and polished diamonds, and the resulting decline in demand for rough diamonds, Ekati product has continued to generate strong buyer interest and high sell-through rates.
The quality of the Ekati product and Canadian provenance remain highly valued in the market, supporting the company’s sales events in line with its vertically integrated business model to capture margins across the full diamond value chain.
The increased focus on provenance and traceability is highlighted by the ongoing efforts of the G7 sanctions to restrict the flow of Russian diamonds, which should further restrict the supply of natural diamonds to the market, ultimately leading to increased prices.
