Dominion Diamond Announces New Chairman

Toronto: Dominion Diamond Corp said that Robert Gannicott has retired as Chairman, with Jim Gowans appointed as non-executive Chairman of the Board of Directors with immediate effect. Gannicott will remain as a director of the company.

Gowans was appointed to the Board of Directors on January 13. He has extensive operational experience in many aspects of the mining industry, including exploration, major projects, operations and human resources as well as extensive leadership experience both in Canada and internationally. Gannicott headed the firm for 12 years.

Dominion is the world’s third largest producer of rough diamonds by value. It operates the Ekati diamond mine and also owns 40% of the Diavik diamond mine which are both located in the Northwest Territories in Canada.

Financial Results Down:

Dominion Diamond Corporation declared a net loss in fiscal 2016 as a weaker diamond market coupled with lower gem prices that persisted throughout the year cut revenue from its two Canadian mines.

The company recorded a $38.8 million loss over a year to January 31, compared with a profit of $73.6 million in fiscal 2015. Sales dived 21 percent to $720.6 million as revenue from the Ekati mine that the company owns outright slid 18 percent and the Diavik pit, where Dominion has a 40 percent ownership, suffered a 27-percent drop.

Given a backdrop of a slower diamond market, the average price of gems produced at Ekati retreated to $199 per carat from $260 a year earlier, the miner said. The mean the selling price of Diavik diamonds, however, jumped to $147 per carat from $117 as Dominion held back lower-than-average priced inventory, it added.

The company also attributed the full-year loss to an income-tax expense resulting from exchange-rate fluctuations and an after-tax one-time charge in connection with the departure of Chairman Robert Gannicott.