Kimberley Diamonds reported that revenue declined 50 percent year on year to $15.5 million during the company's third quarter that ended on March 31. The company sold 21,431 carats for an average $725 per carat during the period, 39 percent less than one year ago. Management explained that the company sold fewer carats as it processed lower-grade stock piles from the Ellendale 9 (E9) pit as a result of a rock slippage underneath the main haul ramp in June 2013.
production dropped 39 percent to 22,280 carats as the company treated
only surface ore stockpiles and lower-grade stockpiles during the
quarter. In-pit mining at E9 recommenced in April 2014 following the wet
season and was one month later than anticipated. Kimberley Diamonds
noted that ore treated in the fourth quarter will be primarily higher
grade fresh pit ore.
The company saw strong prices from its
auction of run-of-mine commercial goods held in March 2014. The overall
average price achieved of $207.33 per carat was 17 percent higher than
prices achieved in the second quarter and set a new highest average
price per carat since the previous high achieved in 2011.
February 2014, Kimberley Diamonds acquired the Lerala mine in Botswana
as part of the takeover of U.K.-based Mantle Diamonds. The current
projected life of mine for Lerala is six years, with the mine
anticipated to produce 400,000 carats per year at full production.
company also finalized its acquisition of the Argyle Smoke Creek
alluvial diamond project from Venus Metals Corporation Limited for
$928,500 (AUD 1 million). The project consists of 22 prospecting
licenses and one mining lease application with 12 of the prospecting
licenses containing an estimated resource of 6 million carats.
Diamonds said it will recommission the Ellendale 4 (E4) mine and plant
during the year. The operation was placed on care and maintenance in
February 2009 by its previous owners due to the global financial crisis
when rough diamond prices slumped. E4 is estimated to contain a resource
of 2.4 million carats. During the quarter, limited scoping work began
toward refurbishing the plant and obtaining necessary regulatory
Kimberley Diamonds closed the quarter with $12.1 million (AUD 13 million) cash on hand and no debt.