Dominion Diamond Increases Rough Production Forecast

Dominion Diamond Corporation revised its production forecast 11 percent higher for 2013 at the Diavik diamond mine in Canada to 6.6 million carats. The increase was attributed to processing more of Diavik's stockpiled ore, and Dominion Diamond added that further revisions may be forthcoming in June.

A new mine plan and budget for the company's recently acquired Ekati diamond mine is currently under review, but Dominion foresees production of approximately 1 million carats in 2013.

Mine production follows the calendar year, but Dominion Diamond is currently in its fiscal year 2014 and it expects rough diamond sales to reach $730 million, with $365 million worth of revenue coming from each of the 40 percent share of Diavik and the 80 percent share of Ekati.

Included in fiscal 2014 sales is approximately $25 million from stockpiled rough diamonds available as of January 31 at the Diavik mine and $70 million worth of rough inventory at the Ekati diamond mine. The model that had been included with the reserves and resource statement that Dominion issued on April 24, assumed revenue of $135 million for the first six months of the fiscal year from the sale of all inventory on hand, but Dominion stated now that this inventory would not be sold before June 30 after all.

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