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TORONTO (miningweekly.com) – The NYSE-quoted stock of Canadian diamond producer Dominion Diamond Corp on Thursday rose more than 7% to $11.64 apiece after the company late on Wednesday reported a net loss beating analyst expectations.
The Yellowknife, Northwest Territories-headquartered miner, which owns an 89%-stake in the Ekati mine and is in a 40/60 joint-venture partnership with mining major Rio Tinto at the Diavik mine, reported a net loss attributable to shareholders in the quarter ended April 30 of $1-million, or $0.01 a share, compared with a net income of $12-million, or $0.14 a share diluted a year earlier.
Wall Street analysts had on average expected a loss of $0.10 a share. Dominion reported a 5% year-over-year decline in revenue to $178.3-million. It explained that despite declaring commercial production at the Misery Main kimberlite pipe ahead of schedule in May as a result of changes to the prioritisation of mining activities during the quarter, the transitional period at Ekati continued to impact earnings.
The company expected Misery Main to provide significant cash flow and positive contribution on earnings in the second half of the year.
“We are very pleased to announce the commencement of commercial production at Misery Main, ahead of schedule. Misery Main will provide significant cash flow and will have a positive contribution on our earnings in the second half of the year,” CEO Brendan Bell stated.
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