Burgundy Diamond Mines announces 2024 year-end results

Burgundy Diamond Mines Limited (ASX:BDM) (Burgundy or the Company) provided the filing of its 2024 Annual Report, including the annual audited financial statements and explanation of results for the financial year ended December 31, 2024, to the Australian Stock Exchange on March 31, 2025.

During the year, Burgundy cemented its position as the largest G7 producer of natural diamonds, supplying around 4% of global rough diamonds. The Company also achieved the milestone of 100 million carats produced and sold from the Ekati asset over the course of its 26-year history.

“This is a remarkable achievement which highlights the quality of the asset, the people, the strong resource base, a replicable operating model, and an abundance of kimberlite pipes,” said Kim Truter, CEO and Managing Director of Burgundy Diamond Mines.

A strong focus was placed on strengthening the balance sheet for the business through several initiatives including:

  • The renegotiation of the mine closure provisioning terms (Surety Agreement) to align with the current Life of Mine Plan;
  • The establishment of an environmental trust account related to the Surety Agreement to optimize the structure of tax effectiveness; and
  • Paying out historical convertible note debt and the associated 6% coupon rate out of operating cash flow, resulting in a total debt reduction of approximately $123 million since June 2023.

The Company began transitioning its operations from Sable open pit to the new Point Lake open pit, which continues in 2025. Once fully operational, Point Lake will complement the Misery underground production, which is located nearby. The proximity of these two operations creates significant operational efficiencies, such as reduced travel times and single-direction ore long haul to the processing plant.

Although the year was overshadowed by depressed diamond prices due to several factors including a sluggish Chinese economy, the ongoing conflict in Ukraine, over supply from the two largest producers and lower than normal diamond jewellery retail sales, with aggregate global diamond prices dropping approximately 25% year over year, Burgundy saw its revenue decline by only 6%.

“This a testament to the quality of Ekati diamonds and the benefits of operating in the Canadian jurisdiction. This also underscores how the Ekati product generally outperforms the market, making the asset more resilient to market headwinds,” said Truter. “As we look into 2025, we are excited about the rough diamond supply and demand equation tightening up, which will inevitably lead to improved rough diamond price realization.”

To view the full 2024 Annual Report, please visit burgundydiamonds.com/financial-reports.

 

Other Press Releases

Burgundy Diamond Mines announces 2024 year-end results

Burgundy Diamond Mines Limited provided the filing of its 2024 Annual Report, including the...
Read More

Burgundy Diamond Mines announces an innovative diesel fuel offtake agreement with a subsidiary of Macquarie Bank Ltd.

Burgundy Diamond Mines Limited is pleased to announce the successful completion of a fuel...
Read More

Burgundy Diamond Mines reports fourth quarter 2024 results

Burgundy Diamond Mines Limited (ASX:BDM) provided its financial and operating results for the fourth...
Read More

Celebrating five years of safety excellence at Ekati mine Misery Underground operation

The Misery Underground operation teams at Burgundy’s Ekati Diamond Mine are celebrating a significant...
Read More

Burgundy Diamond Mines: Leads Ethically-Sourced Diamonds with Vertical Integrated Model in Top-Tier Canadian Asset

Burgundy Diamond Mines, an ASX-listed global diamond company, presents an intriguing opportunity in the...
Read More

Kim Truter CEO of Burgundy Diamond Mines: Revolutionizing the diamond industry

Kim Truter CEO of Burgundy Diamond Mines was featured on ASX Briefs, an Australian-based...
Read More