Burgundy Production Halves as it Halts Open-Pit Mining
November 06, 25
(IDEX Online) - Burgundy Diamond Mines reported a steep decline in the number of carats recovered and sold during Q3 as it battled a challenging market and the impact of US tariffs.
Production for the quarter was down 51 per cent year-on-year to 610,000 carats, the Australian-based miner said in its Quarterly Activities Report for the period ending 30 September.
It also said it sold 810,000 carats during the quarter, down 43 per cent on the same period last year.
The company halted operations at the open-pit Point Lake mine in Canada's Northwest Territories, about 120 miles south of the Arctic Circle, and laid off hundreds of workers in mid-July as a result of "sub-economic prices". Mining continues at the neighboring Misery underground suite.
Burgundy voluntarily suspended trading in its shares on 29 September as it sought the external funding it needs to remain financially viable.
It is hoping to secure a CAD 150m (USD 108m) loan from the Canada Enterprise Emergency Funding Corporation (CEEFC) to address liquidity shortfalls and support ongoing operations and financial stability.
Pic of Ekati mine, courtesy Burgundy Diamond Mines.