Burgundy's Q1 Revenue Down 38%
May 06, 25
(IDEX Online) - Burgundy Diamond Mines saw a steep drop in Q1 revenue from its Ekati mine, in Canada, impacted by a drop in sales volumes, lower-value goods, bad weather and planned disruptions.
The Australia-based company sold USD 73m in the three months to 31 March, down 38 per cent on USD 118m in the same period last year.
Average per carat price fell 30 per cent from USD 88 in Q1 2024 to USD 66 in Q1 2025, on sales of 1.2m carats, down 11 per cent on 1.3m year-on-year.
Burgundy said the decline in revenue and adjusted EBITDA (down 76 per cent to $6.5m) was driven by both lower volumes and a higher proportion of low-value carats sold. Many were carryover inventory from 2024.
The company has also been transitioning within the Ekati mine from the Sable open pit to Point Lake - the first diamondiferous kimberlite discovered in the Northwest Territories - where it hopes to improve production and possibly to extend the life-of-mine.
Surface mining equipment has been relocated to Point Lake, hampered by adverse weather - and staff have moved to the camp at the Misery Main Pipe.
"This co-location of Point Lake and Misery unlocks improved operational efficiencies, increases effective shift time, and enables a step change downward in mining costs," said Kim Truter, Burgundy CEO.
He also said an agreement had been reached an agreement with Macquarie Bank, an Australian multinational investment bank, for an innovative fuel offtake contract that should improve working capital.
Burgundy is one of three loss-making Canadian diamond mines that will benefit from a USD 11m support package from the Northwest Territories government, aimed at preventing job losses and protecting collaborative initiatives between miners and Indigenous communities.
Pic courtesy Burgundy shows the Misery underground pipe at Ekati.