Dominion Diamond Corporation has reported a 24% decline in sales during the quarter ended July 31, 2015 with sales of US$ 209.7 mn as against US$ 277.3 mn in the comparative period a year ago, while releasing its financial results for the period. It said that the market for polished continued to be quiet on the back of subdued demand from Asia.

With Chinese demand particularly for the middle size range of polished diamonds being weak, the Company had lowered prices during its latest sale in August taking the fiscal year-to-date average prices down by approximately 5%, which it said was in line with market prices.

On the production front, Dominion noted that the changes to the processing plant at Ekati with the aim of optimizing diamond recovery have shown promising test results. It added that operational challenges experienced at the Ekati Diamond Mine process plant in Q1 fiscal 2016, which impacted margins in Q2, have been successfully resolved.

Ore mined at Koala Underground and Koala North exceeded plan for the period, and preliminary economic assessment at the Sable kimberlite pipe on the Ekati property has been completed, with positive results. In a separate announcement, Dominion said that Sable has an indicated mineral resource of 11.7 mn carats and that it has capital and operational synergies with the Jay Project.

The statement added that the Misery Main pipe is still on track for first production in Q1 fiscal 2017; first production from the Pigeon pipe is expected in early Q4 fiscal 2016; and the A21 development continues on plan.

The Board of Directors declared an interim dividend of US$ 0.20 per share to be paid to all eligible shareholders.

The company declared a loss of US$ 2.8 mn before taxes as compared to a US$ 3.8 mn profit in the same period a year ago. EPS was negatively impacted by the impact of currency market changes and the fact that the sale of carats from pre-commercial production at Misery Northeast was not included in gross margin. It was also affected by the one-time after-tax charge incurred in connection with the departure of Robert Gannicott as CEO in the second quarter.

Commenting on the results, Brendan Bell, Chief Executive Officer stated: “The Company’s operations are on track and once again performing well. We have overcome the production challenges experienced earlier in the year and look forward to improved performance as we move through the second half of this transitional year at Ekati.”