Dominion Diamond gains on Q1 performance

Dominion Diamond Corp (TSE:DDC) (NYSE:DDC), which sold the Harry Winston jewelry brand last year to Swatch Group AG, gained 4.4% to C$13.90 after saying rough diamond production, sales and prices all exceeded targets for the first quarter of its fiscal 2015 year.

The company said that all the numbers for the three months from February to April all exceeded targets to the extent that the estimated value of its production at current sales prices is ahead of expectations by about $100 million.

Total sales in the first quarter, on a preliminary basis, came to $175.5 million, including $82.7 million from its Diavik rough diamond mine and $92.8 million from the Ekati mine, both of which are located in the Northwest Territories.

The diamond miner said its production guidance for each mine will be reviewed at the end of the second quarter. In the first quarter, output at Ekati was 24% ahead of target, while production at Diavik was 13% ahead of estimates, it said.

Overall pricing in the first quarter was also up 7% since the beginning of the calendar year, according to the statement.

At April 30, the company had inventory with an estimated market value of approximately $285 million, of which $65 million represents discretionary inventory with the balance being work in progress.

Dominion supplies rough diamonds to the global market through its sorting and selling operations in Canada, Belgium and India and is the world's fourth largest producer of rough diamonds by value.

Shares were up 4.3% in Toronto in late afternoon trade, at C$13.88.

Original Article

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