Home » Commodities » Mining Roundup: Canada’s Dominion Diamond Reports Q2 Loss

Mining Roundup: Canada’s Dominion Diamond Reports Q2 Loss

iNVEZZ.com Friday, September 6th: Canada’s Dominion Diamond Corp (TSE:DDC) has reported a second-quarter loss of $16.3 million, a sharp reversal of the $4.8 million profit booked in the same quarter last year. Sales from continuing operations jumped though, to $261.8 million from 2012’s $61.5 million, the miner said in a statement late Wednesday.

Dominion also announced that is eyeing an expansion that could extend the life of its recently acquired Ekati mine in northern Canada by 10 to 15 years, and may return cash to shareholders. The company’s statement gives some clues as to how it might use its cash reserves unspent in the abortive attempt to acquire Rio Tinto (LON:RIO) diamond assets . Dominion plans this autumn to develop a new area called Jay

Pipe near the Ekati mine. The company is to submit a project outline to regulators for initial comment. Jay Pipe is located under a lake, making its development challenging, but under the current plan for the mine, operations at Ekati will wrap up in 2019, Dominion explained.
**As of 14:30 BST buy Dominion Diamond shares at C$13.40.**
**As of 14:30 BST sell Dominion Diamond shares at C$12.91.**

**Newcrest Vows to Implement Disclosure Review Recommendations**
Newcrest (ASX:NCM) is to tighten its procedures for contacts with corporate analysts following an investigation into whether the gold miner disclosed market-sensitive information before it announced a A$6 billion write-down.
Newcrest has vowed to implement all the recommendations of an independent review conducted by former ABC and Australian Securities Exchange chairman Maurice Newman, who urged the miner to consider “changing the emphasis from proactive to reactive contact” with analysts. “Stifling dialogue” with shareholders and brokers “may not be optimal for the investing public”, said Newman, but “may be the company’s most prudent approach”.

Don Mercer, Newcrest’s chairman, said in a statement today: “The board supports in principle all of Dr Newman’s recommendations. We will now proceed with their implementation, noting that a number are already reflected, fully or in part, in existing company policies and procedures.”
Newcrest’s share price fell sharply in June after some analysts re-rated the stock as a sell days before the Australian miner revealed an asset impairment in response to the falling gold price. The sell-off triggered claims that Newcrest had passed on information to analysts before releasing it to the market and Newman was hired to investigate the company’s disclosure practices. The review apparently found no evidence that the company takes a “lax” approach to investor relations.

**As of 14:30 BST buy Newcrest shares at A$12.80.**
**As of 14:30 BST sell Newcrest shares at A$12.78.**
**Labour Walkout in South Africa’s Mining Sector**
!m[Gold Miner Newcrest Tightens Up On Analyst Contacts](/uploads/story/5325/thumbs/pic1_inline.jpg)
Some South African gold mine workers have ended their strike and are heading back to work after just three days of industrial action in pursuit higher wages, a union and major gold producer both reported today.
South Africa’s Sibanye Gold (NYSE:SBGL) said workers at its Kloof mine near Johannesburg had ended a strike as of last night and that it hoped personnel at its Beatrix mine in the Free State province would return today. Other main gold producers operating in the country, including AngloGold Ashanti (LON:AGD), Gold Fields (NYSE:GFI) and Harmony Gold (LON:HRM), have also been impacted by the labour walkout.

About the author

Jane Tindall
I've worked within the banking & financial regulation industry for over 10 years. Now, I report on these sectors and offer my opinion on how it affects economies.

Leave a Reply

Investing is speculative. When investing your capital is at risk. This site is not intended for use in jurisdictions in which the trading or investments described are prohibited and should only be used by such persons and in such ways as are legally permitted. Your investment may not qualify for investor protection in your country or state of residence, so please conduct your own due diligence. This website is free for you to use but we may receive commission from the companies we feature on this site. Click here for more information.