Burgundy Diamond Mines reports fourth quarter 2024 results

Burgundy Diamond Mines Limited has been in operation for over twenty-six years of production. Burgundy also remains on track to release its first mine plan by the end of Q1-2025. Burgundy will release the longer-term mine plan in the second half of 2025, which could extend the life of the mine to the mid-2030s.

Additionally, Burgundy completed the set-up of an environmental trust where contributions made for future closure obligations can be used as tax credits that can be applied to 2024 taxable income, carry back to the tax period ended December 2023 or carry forward to future years.

The Fourth quarter operational and financial highlights:
Ore tonnes mined: 0.97 million tonnes, decreased by 12% from (Q4-2023: 1.10 million tonnes)
Tonnes processed: 0.98 million tonnes, decreased by 7% from (Q4-2023: 1.05 million tonnes)
Carats recovered: 1.02 million, decreased by 17% from (Q4-2023: 1.24 million)
Carats recovered per tonne processed: 1.05 C/t, decreased by 11% from (Q4-2023: 1.18 C/t)
Carats sold: 1.10 million over two sales events, down 39% from (Q4-2023: 1.79 million)
$92/ct. achieved for total proceeds of $101 million (A$162 million)
EBITDA: $20.5 million; (A$33.0 million)
Cash of $25.1 million; (A$40.4 million)

“During the quarter, Burgundy’s mining team unveiled the first ore from the Point Lake open pit, marking Ekati’s 10th operation over the twenty-six years. Burgundy looks forward to reporting on its progress next quarter, by which point the project will be entering ore production,” said Kim Truter, CEO of Burgundy Diamond Mines.

This period is typically cash intensive for Canadian Arctic mines, due to a four-month period in which most consumables are purchased and then trucked to site along the winter road, which is the reason for Burgundy’s lower cash position this quarter.

Given the environmental trust account set up, and payments made during 2024, Burgundy now has a ~ US$27 million tax benefit heading into 2025, which significantly reduces, if not eliminates the Company’s 2024 tax obligation.”