Diamcor Accelerates Mine Upgrades in Hot Market

RAPAPORT... Diamcor Mining has fast-tracked its mine-improvement program by several months to increase production and benefit from the current strong rough prices.The upgrades, which would allow the company to step up both output and processing at its Krone-Endora at Venetia deposit in South Africa, were originally scheduled to be completed by June 30, the company said last week. "Given the current strength of rough-diamond prices and the potential for additional shortages moving forward, we have elected to accelerate the completion of certain portions of our second phase of upgrades earlier than planned," said Diamcor CEO Dean Taylor. "[This will] provide us with the ability to increase processing volumes in the shortest period of time and serve to position the company with the ability to capitalize on any further increases in rough-diamond prices or supply shortages should they occur moving forward."During the third fiscal quarter ending December 31, Diamcor sold 5,442 carats of rough, 25% more than the previous quarter, it noted. Total proceeds came to $1.1 million, at an average price of $198 per carat. While the company reported a loss of $939,916, that figure was still a 34% improvement over the third quarter of 2020, the miner explained. During the period, Diamcor reduced its debt by $2.4 million."Recent tenders and sales have shown strong demand and price increases in various categories, and we believe this trend has the potential to continue in the coming months as considerable quantities normally supplied by Russia may be impacted due to recently announced economic sanctions," Taylor added.Image: Rough diamonds. (Diamcor Mining)