rough diamond Diavik Foxfire

DIAVIK MINE LIFE EXTENDED, NUMBER OF EXPECTED CARATS INCREASED

A new report by Diavik Diamond Mines Inc., a subsidiary of Rio Tinto, extends the life of the Diavik Diamond Mine from 2023 to 2025, and predicts an increase in carat production and growth in future revenues and cash flows, IDEX Online reports.

 

The report says that Diavik’s after-tax net present value is approximately $2.6 billion at a 7% discount rate, based on the assumptions and analysis in the Technical Report. It adds that 46 million carats are expected to be recovered between 2017 and 2025 – “an increase of 6.3 million carats or 16% from the previous estimate for the comparable period”.

 

Additionally, total revenue is forecast to total approximately $9 billion between 2017 and 2025 – an increase of 22% from the previous estimates for the period.

 

Jim Gowans, Chairman of the Board of Directors, said: “The updated life of mine plan for Diavik extends the mine life, increases carat production, and grows future revenues and cash flows, while maintaining operating costs and capital expenditures at levels that are consistent with earlier forecasts”.

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