Dominion Diamond Corporation has reported a 17% rise in carats recovered to 2.15 million carats in the first quarter ending April 30, 2017. According to IDEX Online, the rise was mainly attributed to “production from the high-grade Misery Main pipe at the Ekati mine, with stable production at the Diavik mine”.
Jim Gowans, Chairman of the Board, commented: ““Between the February 2017 sale and the May 2017 sale, average prices have increased by 3 percent and 1 percent for the Ekati mine and Diavik mine, respectively. The increase in average prices reflects some recovery in demand for lower-priced rough diamonds following the Indian demonetization […] While prices have not recovered as quickly for the smaller white goods, there has been more marked improvement in prices for brown goods, leading to a greater average price increase for the Ekati segment”.
Gowans also spoke about market conditions, saying that the market “has become more positive than in recent months and overall prices have improved from early fiscal 2018 levels after a slight dip associated with the residual effects of the November 2016 demonetization of the Indian rupee”. He added that in the US, the diamond jewelry retail industry “failed to meet market expectations in the first quarter” but that “the level of optimism in the market has since increased”. In China, there has been improvement in demand and there is “increased activity in Hong Kong and Macau”.
