Burgundy Diamond Mines achieved tremendous financial growth and operational achievements in the first quarter of 2024, solidifying its position in the global diamond market and highlighting the potential of its Ekati diamond mine.
Burgundy‘s Q1 2024 EBITDA totaled $26 million, a 49% improvement over the previous year. The company also announced a record revenue of $117 million. These data demonstrate the significance of Burgundy‘s strategy focus on operational efficiency and market expansion since acquiring Arctic Canadian Diamond Company in June 2023.
The Ekati diamond mine produced 1.15 million carats in Q1 2024, a minor 3% decline from Q1 2023. However, the company sold 1.32 million carats, representing a significant 65% rise over the previous year. The average grade declined from 1.23 to 1.12, representing a 9% decrease, yet total sales volume and revenue increase indicate a healthy demand for Ekati diamonds.
Despite a general downturn of the polished diamond market, Burgundy’s Ekati diamonds have maintained strong buyer interest and sell-through rates. Burgundy ascribed this resiliency to the high quality and Canadian origin of Ekati diamonds, which are highly prized on the market. Burgundy‘s vertically integrated business model, which captures margins across the entire diamond value chain, has also helped drive robust sales.
Burgundy Diamond Mines CEO Kim Truter emphasized the necessity of worldwide market access for the company’s long-term development. “The more access we have to the global market, the more bids we receive from clients searching for a dependable, long-term, high-quality product produced with an unwavering ethical standard – it’s that easy. In five years, we might be the only producers in North America, the world’s greatest diamond-consuming continent.”