Dominion Diamond (TSE:DDC) (NYSE:DDC) has posted rough diamond production, sales and pricing that all exceeded its targets in the second quarter, the company said Tuesday.
The Canadian diamond producer, which reports in US currency, told investors early this morning that its Ekati and Diavik diamond mines both performed "exceptionally well" during the three month period through to the end of July.
Total sales for the three months to July 31 were $277.3 million, as the company sold a total of 1.5 million carats. The company said the figures exclude the processing of material from the Misery Satellite pipes at the Ekati mine, which it expects will begin commerical production for accounting purposes on September 1.
The company said that for the second straight quarter, diamond production at its Ekati mine was substantially ahead of plan due to higher than expected grades, coupled with operational improvements to the processing plant implemented over the last 10 months.
It estimates that these improvements have increased the recovered grade by about 15 percent during the first six months of this year.
Meanwhile, at Diavik, ore mined was 20 percent ahead of plan during the latest period, thanks to higher production from all three kimberlite pipes on account of favourable ground conditions and improved availability of equipment.
On top of these results, Dominion said that as at July 2014, overall pricing was up approximately 8 percent since the beginning of the calendar year.
At Q2 end, the company had rough diamond inventory with an estimated market value of approximately $315 million, of which $45 million represents discretionary inventory with the balance being work in progress.
Separately, the diamond producer also on Tuesday appointed Ron Cameron as its chief financial officer, effective September 8. Cameron will be based in Yellowknife, and was previously executive VP of Concentra Financial.
Shares of Dominion Diamond were unchanged Tuesday afternoon at C$15.00.