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.
SPIRALLING costs in a tough retail climate have claimed another scalp as the 80-year-old jewellery group, Bevilles, falls into voluntary administration.The family-owned group which is based in Melbourne warned there would be store closures, with up to 250 of its 477 employees expected to be made redundant. It has 17 of its 27 stores in Victoria, with the rest in Sydney and Adelaide.
Chief executive Michelle Beville, whose grandparents founded Bevilles in 1934, said the group had been working to trim store sizes in a move that would cut rent costs and staffing requirements.
But complications around leases and the resizing program meant the company had been unable to roll out the smaller format quickly.
“We have been trying very hard to restructure the business from a cost perspective, but leases are a big part of the costs.”
Ms Beville said the Beville family had proposed a restructure plan to the administrators, PPB Advisory, which would see the family buy back a number of the stores. The stores would then be converted as quickly as possible to the smaller-format model, which does not stock giftware lines.
Ms Beville said two smaller stores launched in Highpoint shopping centre and in Sydney last year had been well received.
The group’s creditors are mainly suppliers both in Australia and overseas.
Administrators are expected to make a decision by the start of May.
Source: Jane Harper