|By PR Newswire||
|January 15, 2014 07:02 PM EST||
TORONTO, January 16, 2014 /PRNewswire/ --
Dominion Diamond Corporation (TSX: DDC) (NYSE: DDC) (the "Company") reports Diavik and Ekati Diamond Mine fourth calendar quarter production results.
Diavik Diamond Mine
The fourth calendar quarter of 2013 saw a continuing strong performance from the Diavik Diamond Mine. During the fourth calendar quarter of 2013, the Diavik Diamond Mine produced (on a 100% basis) 2.1 million carats from 0.54 million tonnes of ore processed compared to 1.9 million carats from 0.47 million tonnes of ore processed in the comparable quarter of the prior year.
Processing volumes in the fourth quarter were 16% higher than the prior year's comparable quarter. This was a result of improvements in the mining rates as the underground ramp up progressed throughout the year to full production from all three pipes.
A new mine plan and budget for calendar 2014 is under final review by Rio Tinto plc and the Company. The plan for calendar 2014 foresees Diavik Diamond Mine production (on a 100% basis) of approximately 6.1 million carats from the mining and processing of approximately 1.9 million tonnes of ore. Mining activities will be exclusively underground with approximately 0.7 million tonnes expected to be sourced from A-154 North, approximately 0.8 million tonnes from A-154 South and approximately 0.4 million tonnes from A-418 kimberlite pipes. In addition to the 6.1 million carats produced from underground mining there will be production from reprocessed plant rejects (RPR) and production from the improved recovery of small diamonds. This additional production is not included in the Company's ore reserves, and is therefore incremental. Based on historical recovery rates, the tonnage of this material which is planned to be processed during calendar 2014 would have produced 0.6 million carats from RPR and 0.2 million carats from the improved recovery process.
Ekati Diamond Mine
With the Company's senior management now firmly established in Yellowknife, the Ekati Diamond Mine is performing well. During the fourth calendar quarter of 2013, the Ekati Diamond Mine produced (on a 100% basis) 0.4 million carats from the processing of 0.9 million tonnes of ore from the reserves. Activities through the calendar quarter continued to focus on ore production from the Fox open pit, and Koala and Koala North underground. The Company also recovered 0.1 million carats from the processing of 0.1 million tonnes of coarse ore rejects and diamond bearing kimberlite excavated from satellite bodies in the Misery open pit (referred to as Misery South & Southwest).
A new mine plan and budget for fiscal 2015 is under final review by the Company. In fiscal 2015, the Ekati Diamond Mine expects to process (on a 100% basis) approximately 2.7 million tonnes from the mineral reserve and produce approximately 1.0 million carats. The Company expects to process approximately 1.7 million tonnes from the Fox pipe (including stockpiles) and approximately 1.0 million tonnes split between Koala phase 5 and phase 6 & 7. Additional plant feed to keep the processing plant at capacity for the period will be sourced from additional levels in the Koala North underground (inferred mineral resources), the Misery South and Southwest diamond bearing satellite bodies as well as the stockpile of coarse ore rejects. The Koala North underground, Misery South and Southwest satellite bodies as well as the coarse ore rejects are not included in the Company's reserves and resource statement and are therefore considered incremental to production.
Winter Road, Drilling Programme and Permitting
The Winter Road is expected to open in approximately two weeks and the relevant equipment will be mobilized via that road. The Company is working on a pre-feasibility study for the Jay Cardinal project which it aims to complete in calendar 2014.
The diamond and sonic core drilling programme which will be carried out at the Jay and Cardinal pipes and along alignments for the dikes planned for the proposed development is expected to commence in early-mid February 2014.
Permitting of both the Lynx kimberlite pipe and the Jay-Cardinal kimberlite pipes is proceeding as expected. Dates have been set in early February 2014 for public hearings on Lynx which has advanced directly to the permitting phase. At the same time, public scoping sessions are being held for Jay-Cardinal in order that the upcoming environmental assessment adequately focusses on issues of public interest. In parallel, and in support of the processes laid out by regulators, the Company continues discussions with its community partners in order to design the projects in a manner which minimizes any potential environmental impacts and at the same time maximizes local economic benefit.
Updated Life of Mine Plans
The Company expects to release an updated life-of-mine plan for both the Diavik Diamond Mine and the Ekati Diamond Mine including current estimates for anticipated annual production by pipe and associated operating and capital costs shortly.
Diavik Diamond Mine
For the 2013 calendar year, the Diavik Diamond Mine performed ahead of target, producing (on a 100% basis) 7.2 million carats from 2.1 million tonnes of ore processed compared to production of 7.2 million carats from 2.1 million tonnes of ore processed in the calendar 2012.
DIAVIK DIAMOND MINE PRODUCTION 40% BASIS
For the three months ended December 31, For the three months ended December 31, 2013 2012 Ore Processed (000s Carats Grade Ore Processed Carats Grade Pipe tonnes) (000s) (carats/tonne)(000s tonnes) (000s)(carats/tonne) A-154 South 51 220 4.28 67 313 4.66 A-154 North 69 144 2.10 42 89 2.11 A-418 94 418 4.46 77 344 4.49 RPR 2 44 - 0.6 14 - Total 216 826 3.66 (a) 187 760 4.01(a)
(a)Grade has been adjusted to exclude RPR
For the twelve months ended December 31, For the twelve months ended December 31, 2013 2012 Ore Processed (000s Carats Grade Ore Processed Carats Grade Pipe tonnes) (000s) (carats/tonne) (000s tonnes) (000s) (carats/tonne) A-154 South 228 976 4.29 166 750 4.52 A-154 North 288 606 2.11 173 354 2.05 A-418 326 1,160 3.56 482 1,732 3.59 RPR 6 155 - 2 55 - Total 848 2,897 3.26 (a) 823 2,892 3.45 (a)
(a) Grade has been adjusted to exclude RPR
Cost of Sales and Cash Cost of Production
Based on the current mine plan for the Diavik Diamond Mine for calendar 2014, the Company currently expects its 40% share of the cost of sales for the Diavik Diamond Mine in fiscal 2015 to be approximately $280 million (including depreciation and amortization of approximately $100 million). The Company's 40% share of the cash cost of production at the Diavik Diamond Mine for calendar 2014 is expected to be approximately $155 million at an assumed average Canadian/US dollar exchange rate of $1.05.
The Company currently expects Dominion Diamond Diavik Limited Partnership's 40% share of the planned capital expenditures for the Diavik Diamond Mine in fiscal 2015 to be approximately $20 million, assuming an average Canadian/US dollar exchange rate of $1.05.
Ekati Diamond Mine
During the period from April 10, 2013 to December 31, 2013, the Company (on a 100% basis) has mined a total of 4.2 million tonnes from the Ekati Diamond Mine from reserves with approximately 3.5 million tonnes from the Fox pipe, approximately 0.2 million tonnes sourced from Koala Phase 5, approximately 0.2 million tonnes from Koala Phase 6 & 7, and slightly under 0.3 million tonnes from Koala North. During this period, production (on 100% basis) was 1.1 million carats from the processing of 2.8 million tonnes of ore from the reserves. The Ekati Diamond Mine also produced 0.33 million carats from the processing of 0.30 million tonnes of coarse ore rejects and diamond bearing kimberlite excavated from Misery South & Southwest.
EKATI DIAMOND MINE PRODUCTION 80% BASIS
For the three months ended December 31, 2013 Ore Processed Carats Grade Pipe (000s tonnes) (000s) (carats/tonne) Koala Phase 5 46 19 0.42 Koala Phase 6 67 82 1.21 Koala North 63 48 0.75 Fox 576 157 0.27 Misery South & Southwest 34 44 1.33 Coarse Ore Rejects 29 18 0.60 Total 815 367 0.45
EKATI DIAMOND MINE PRODUCTION 80% BASIS
For the period from April 10, 2013 (date of acquisition) to December 31, 2013 Ore Processed Carats Grade Pipe (000s tonnes) (000s) (carats/tonne) Koala Phase 5 145 57 0.39 Koala Phase 6 156 199 1.27 Koala North 187 140 0.75 Fox 1,710 514 0.30 Misery South & Southwest 176 238 1.36 Coarse Ore Rejects 63 23 0.37 Total 2,437 1,172 0.48
Cost of Sales and Cash Cost of Production
Based on the current mine plan for the Ekati Diamond Mine for fiscal 2015, the Company currently expects cost of sales at the Ekati Diamond Mine (on a 100% basis) in fiscal 2015 to be approximately $520 million (including depreciation and amortization of approximately $125 million). The cash cost of production at the Ekati Diamond Mine for fiscal 2015 is expected to be approximately $360 million (on a 100% basis) at an assumed average Canadian/US dollar exchange rate of $1.05.
The planned capital expenditures for the core zone at the Ekati Diamond Mine for fiscal 2015 (on a 100% basis) are expected to be approximately $195 million at an assumed average Canadian/US dollar exchange rate of $1.05. The planned capital expenditures include approximately $100 million for the continued development of the Misery Pipe, consisting largely of mining costs to achieve ore release, and approximately $55 million towards the development of the Pigeon Pipe.
Based on the Company's sales during the fourth calendar quarter of 2013 and the current diamond recovery profile of the Diavik and Ekati processing plants, the Company has modeled the approximate rough diamond price per carat for each of the ore types below. The prices for the diamonds recovered from Misery South and Southwest extension as well as the coarse ore rejects that are not in reserves are expressed as ranges since there is limited sample data available.
December 2013 Average Price per December 2013 Carat Average Price per Carat (in US Diavik Ore Type (in US dollars) Ekati Ore Type dollars) A-154 South $140 Koala Phase 5 $350 A-154 North $180 Koala Phase 6 $405 A-418 $100 Koala North $420 RPR $50 Fox $305 $80 - Misery South & South West 100 $65 - Coarse Ore Rejects 120
This disclosure refers to cash cost of production, a non-IFRS performance measure, in order to provide investors with information about the measure used by management to monitor performance. This information is used to assess how well each of the Diavik Diamond Mine and Ekati Diamond Mine is performing compared to the mine plan and prior periods. Cash cost of production includes mine site operating costs such as mining, processing and administration, but is exclusive of amortization, capital, and exploration and development costs. Cash cost of production does not have any standardized meaning prescribed by IFRS and differs from measures determined in accordance with IRFS. This performance measure is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. This measure is not necessarily indicative of net profit or cash flow from operations as determined by IFRS.
The scientific and technical information contained in this press release has been prepared under the supervision of Mats Heimersson, P. ENG, an employee of the Company and a Qualified Person within the meaning of National Instrument 43-101.
About Dominion Diamond Corporation
Dominion Diamond Corporation is a Canadian diamond mining company with ownership interests in two of the world's most valuable diamond mines. Both mines are located in the low political risk environment of the Northwest Territories of Canada. The Company is the fourth largest diamond producer by value globally and the largest diamond mining company by market capitalization, listed on the Toronto and New York Stock Exchanges.
The Company operates the Ekati Diamond Mine through its 80% ownership as well as a 58.8% ownership in the surrounding areas containing additional resources. It also sells diamonds from its 40% ownership in the Diavik Diamond Mine.
For more information, please visit http://www.ddcorp.ca
Certain information included herein, including information about mining activities, estimated production from the Company's mining properties, cost of sales and cash cost of production estimates and planned capital expenditures, constitutes forward-looking information or statements within the meaning of applicable securities laws. Forward-looking information is based on certain factors and assumptions including, among other things, the current mine plans for each of the Diavik Diamond Mine and the Ekati Diamond Mine; mining, production, construction and exploration activities at the Company's mineral properties; currency exchange rates; and world and US economic conditions. Forward-looking information is subject to certain factors, including risks and uncertainties, which could cause actual results to differ materially from what the Company currently expects. These factors include, among other things, the uncertain nature of mining activities, including risks associated with underground construction and mining operations, risks associated with joint venture operations, including risks associated with the inability to control the timing and scope of future capital expenditures, the risk that the operator of the Diavik Diamond Mine may make changes to the mine plan and other risks arising because of the nature of joint venture activities, risks associated with the remote location of and harsh climate at the Company's mineral property sites, risks resulting from the Eurozone financial crisis, risks associated with regulatory requirements, the risk of fluctuations in diamond prices and changes in US and world economic conditions, the risk of fluctuations in the Canadian/US dollar exchange rate and cash flow and liquidity risks. Actual results may vary from the forward-looking information. Readers are cautioned not to place undue importance on forward-looking information, which speaks only as of the date of this disclosure, and should not rely upon this information as of any other date. While the Company may elect to, it is under no obligation and does not undertake to, update or revise any forward-looking information, whether as a result of new information, further events or otherwise at any particular time, except as required by law. Additional information concerning factors that may cause actual results to materially differ from those in such forward-looking statements is contained in the Company's filings with Canadian and United States securities regulatory authorities and can be found athttp://www.sedar.comandhttp://www.sec.gov, respectively.
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Feb. 20, 2017 09:15 PM EST Reads: 4,472
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo 2016 in New York. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place June 6-8, 2017, at the Javits Center in New York City, New York, is co-located with 20th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry p...
Feb. 20, 2017 09:15 PM EST Reads: 868
Security, data privacy, reliability and regulatory compliance are critical factors when evaluating whether to move business applications from in-house client hosted environments to a cloud platform. In her session at 18th Cloud Expo, Vandana Viswanathan, Associate Director at Cognizant, In this session, will provide an orientation to the five stages required to implement a cloud hosted solution validation strategy.
Feb. 20, 2017 08:45 PM EST Reads: 4,307
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and 21st International Cloud Expo, which will take place in November in Silicon Valley, California.
Feb. 20, 2017 08:30 PM EST Reads: 1,482
The security needs of IoT environments require a strong, proven approach to maintain security, trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vic...
Feb. 20, 2017 07:00 PM EST Reads: 8,212
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
Feb. 20, 2017 06:15 PM EST Reads: 985
Wooed by the promise of faster innovation, lower TCO, and greater agility, businesses of every shape and size have embraced the cloud at every layer of the IT stack – from apps to file sharing to infrastructure. The typical organization currently uses more than a dozen sanctioned cloud apps and will shift more than half of all workloads to the cloud by 2018. Such cloud investments have delivered measurable benefits. But they’ve also resulted in some unintended side-effects: complexity and risk. ...
Feb. 20, 2017 06:15 PM EST Reads: 798
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Feb. 20, 2017 05:45 PM EST Reads: 485
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
Feb. 20, 2017 05:30 PM EST Reads: 2,239
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
Feb. 20, 2017 05:30 PM EST Reads: 3,897
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, discussed the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports.
Feb. 20, 2017 05:15 PM EST Reads: 960
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
Feb. 20, 2017 02:45 PM EST Reads: 472
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Feb. 20, 2017 02:15 PM EST Reads: 1,100
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Feb. 20, 2017 01:15 PM EST Reads: 455
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Feb. 20, 2017 01:00 PM EST Reads: 852