Diamcor cuts costs as average prices rise

Diamcor has announced it will continue efforts to implement short-term operational changes and cost reduction efforts at its Krone-Endora at Venetia mine in South Africa.

The mine project has been temporarily halted due to local lockdown measures, and in light of the closure, Diamcor will continue to reduce, defer, and minimise costs, including management and director compensation, where possible.  

The company is also working with its corporate bank, and the South African Government, in an effort to secure Covid-19 relief funds, to support the project’s return to day-shift operations when possible. Further operational updates will be provided by the company as they become available in the coming months.   

It comes as the group announced it has secured an additional 45-day period to complete its annual filings, which were initially due on 29 July. It will issue a news release on the updated status of its filings by 28 August, and will complete the filings by 12 September.

In addition to cost-cutting efforts across the group, Diamcor noted the recent completion of the tender and sale of 2,427 carats, generating gross revenues of $271,263 (£208,370), which resulted in an average price of $111.87 (£85.93) per carat for the period. 

Diamcor CEO Dean Taylor said: “We were very pleased with the results of this tender given the higher dollar per carat was primarily associated with a higher percentage of larger, higher quality rough diamonds which were recovered just prior to the required shutdown of operations at the Project. 

“It was unfortunate timing, as the efforts undertaken by our new operational team were clearly demonstrating positive results, and our entire team is looking forward to resuming operations as soon as possible.”