Diamcor Mining Inc report result for the interim period ended September 30, 2024 Management’s recent and Q2 2024 highlights said, the interim period ended September 30, 2024, was encouraging and showed signs of improving industry sentiment given the key retail market of the US remained stable heading into the Thanksgiving and holiday season. Holiday sales have shown better than expected results, and excess inventory levels throughout the industry appear to be rebalancing themselves.
Rough diamond prices in certain categories also appear to be showing signs of recovery, and many within the industry are watching closely to see if the current strength being shown will continue into 2025. Strong holiday sales and the continuation of the improved consumer spending into 2025 are widely expected to have a positive effect in reducing the short-term excess inventories of polished diamonds.
Virtually all luxury retailers have launched significant marketing campaigns, and there is a renewed focus on promoting the difference and desirability of natural diamonds over man-made alternatives.
More restrictive sanctions on Russia (~35% of global supply), lower annual production levels announced by De Beers of (23-26M carats down from ~35M carats historically), and the closing of various mines, with others reaching the end of their production life or seeing reductions in annual production levels, all continue to support the potential for shortages of natural rough diamonds from non-conflict areas in the near-term.
Throughout the interim period the Company continued to focus on reducing costs and the advancement of strategic funding to support planned growth objectives.
The Company continued to target the resumption of processing at increased levels in Q1-2025, as well as efforts aimed at the further growth of its Krone-Endora at Venetia project through the concurrent commencement of bulk sampling aimed at determining the extent and location of displaced material from the adjacent Venetia property on the remaining 85% of the Project.
In the period ending September 30, 2024, the Company continued to primarily focus on advancing its efforts aimed at processing material at significantly higher levels in 2025 and the planned expansion into the greater areas, and thus the Company had no sales of rough diamonds during the period.
In total, ongoing trial mining exercises at the Project from inception thru September 30, 2024, have resulted in the incidental recovery, tender, and sale of 201,461.57 carats of rough diamonds generating revenue at the Project of (USD) $38,736,712.34, resulting in an average price of (USD) $192.52 per carat.
As a result of the reduced processing operations, a lower net loss of $882,171 was recorded for the interim period ended September 30, 2024 ($1,790,239 – September 30, 2023). This resulted in a $0.01 per share loss for the interim period ended September 30, 2024 ($0.01 – September 30, 2023).
Operating expenses were reduced to $191,185 for the interim period ended September 30, 2024 ($735,678 – September 30, 2023), resulting in a gross margin of -$191,185 (-$672,610 – September 30, 2023). General and administrative expenses were also significantly lower at $456,855 for the interim period ended September 30, 2024 ($724,212 – September 30, 2023).
