Burgundy Diamond Mines has reported a loss for 2024 as weak demand led to a devaluation of its assets.
The company posted a net loss of $94.7 million for the 12-month period, compared with a loss of $676,000 for the second half of 2023, the company said last week. However, the comparison is not on a like-for-like basis, as Burgundy acquired the Ekati mine in Canada in July of 2023.
The loss was the result of a $127 million impairment, or devaluation of the company’s mine, property, plant and equipment amid weakened diamond demand and pricing. A deferred tax recovery on the impairment charge of $43.8 million partly offset the decrease, Burgundy explained.
Revenue for the full year came to $442.1 million, versus $257.5 million for the July-to-December period a year earlier.
The company has 186,338 carats in inventory, compared to 244,931 carats as of December 31.
Image: The Misery pit at the Ekati mine. (Burgundy Diamond Mines)
