Ekati Rough Sales Fall as Buyers Shy Away from Lower-Quality Goods

Revenue from the Ekati deposit’s rough production fell during the fourth quarter as demand for lower-quality rough waned, according to owner Burgundy Diamond Mines. 

Sales from the Canadian mine dropped 39% year on year to $101 million for the three months that ended December 31, Burgundy reported Tuesday. Sales volume slipped 39% to 1.1 million carats from 1.8 million carats a year before, outweighing a relatively flat average price of $92 per carat. The drop in sales figures was a result of a strong comparison base in the same period of 2023, which saw the carryover of inventory from previous months, as well as some lower-quality goods offered at the recent tenders going unsold, Burgundy noted. 

During the period, Burgundy sold a selection of fancy-vivid-yellow diamonds, including stones weighing 36, 14.8 and 11.3 carats. Output declined 17% to 1 million carats for the October-to-December period. Over the quarter, Burgundy held two auctions and sold rough through other channels.  

For the full year, production came in 2% below the company’s guidance, it said. The average price for 2024 was down 10% year on year. 

Burgundy currently has rough inventory valued at $63.3 million. The company will release its long-term mine plan in the second half of 2025, with expectations that it could see the life of the deposit extended to the mid-2030s. 

The miner will hold three auctions in the first quarter of 2025, it said. It will release its guidance for the full year during the quarter.