|Panda Pit at the Ekati Diamond Mine located in the Northwest Territories, Canada|
For the period in question, diamond sales were $160 million - down from $209.7 million a year before. Production from Ekati remained flat at 0.9 million carats during the quarter, but the tonnage processed was significantly reduced as a result of the fire at the Ekati process plant that occurred on June 23, and the subsequent processing shutdown. In addition, the company plans to hold two rough diamond sales in the third fiscal quarter of 2017.
Regarding the state of the diamond market globally, the company remarked that “after buoyant market conditions in the first quarter, rough prices stabilized in the second quarter supported by confident US retail demand”. It added that positive conditions in the first half of the year reduced inventories throughout the pipeline and improved liquidity in the industry. However, they added, “the banks that finance the industry remain cautious”, and “the retail markets outside the US remain impacted by the strong U.S. dollar, making jewelry comparatively expensive in domestic currency terms”. Dominion also reported that “Japanese demand remains robust supported by luxury tourism from China”, but that the retail markets in Europe, Hong Kong and the Middle East “remain somewhat subdued”.