Dominion Diamond Profit Up Sharply from Year-ago Quarter

Dominion Diamond Corp. (TSX:DDC,NYSE:DDC) announced its results for the period ended April 30, 2013, noting that it recorded a consolidated net profit attributable to shareholders of $500.2 million, or $5.89 per share. That’s up from $11.6 million, or $0.14 per share, in the year-ago quarter. The company’s consolidated rough diamond sales came in at 108.8 million.

As quoted in the press release:

During the quarter, the Company completed the acquisition of the Ekati Diamond Mine and the sale of the Harry Winston Luxury Brand Segment to Swatch Group.

As at April 30, 2013, the Company had unrestricted cash and cash equivalents of $231.2 million and restricted cash of $125.7 million. The restricted cash is being used to support letters of credit to the Government of Canada in the aggregate amount of $126 million in support of the reclamation obligations for the Ekati Diamond Mine.

In connection with the Ekati Diamond Mine Acquisition, the Company arranged new secured credit facilities consisting of a $400 million term loan, a$100 million revolving credit facility and a $140 million letter of credit facility (expandable to $265 million in aggregate). The Company ultimately determined to fund the Ekati Diamond Mine Acquisition by way of cash on hand and did not draw on these new facilities.

Click here to read the full Dominion Diamond Corp. (TSX:DDC,NYSE:DDC) press release.