Burgundy Diamond Mines announces interim results for its fourth quarter sales, in addition to a company update heading into 2025. During fourth quarter, the Company concluded two sales events for total proceeds of US$93M; 1: October sale cycle (actual), earn US$47M in proceeds from 583 Kcts at an average price of US$80/ct.-Notes: Actual rough sale cycle amounts only. Rounding to the nearest whole number. 2: December sale cycle (provisional) total US$46M in proceeds from 435 Kcts at an average price of US$106/ct.
Burgundy Diamond Mine CEO, Kim Truter, said: “Ekati’s ethically produced G7 product sold well this quarter, achieving US$106/ct in the latest sale. Whilst this number reflects a higher quality parcel of goods sold, the Company saw gains in the mid to large size categories relative to the October sale. This bodes well for a recovering diamond market.”
By presenting 2025 company outlook Burgundy said, the Company looks forward to reporting the results of its mine life extension work at the Sable underground project and the Misery underground operation, in addition to an updated Fox underground prefeasibility study, commencing in Q1-2025.
Under the renegotiated surety agreement (see ASX release 14 August 2024), an extended Ekati mine plan will allow Burgundy to amortise its surety payments over the life of the asset, improving the Company’s cash position. As per the original agreement, surety payments under the renegotiated surety agreement remain subject to Burgundy maintaining a minimum cash balance, which under the renegotiated agreement is US$30M.
In December, Burgundy launched its environmental trust with approximately US$27M in qualified tax deductions, thereby significantly reducing, if not eliminating, the Company’s tax payment for the 2024 tax year.
In the interim, Burgundy is focused on further securing the Company’s financial position by reducing its unit costs across all aspects of the business.
The Company maintains its countercyclical strategy and positive market outlook, driven by the lowest global rough diamond supply in more than twenty years, with no new discoveries entering production.
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