Dominion Diamond Reports Strong Q4 Financial Results; Offers Dividend

Dominion Diamond Corporation (TSX:DDC,NYSE:DDC) announced its fourth quarter 2015 and full year financial results which showed a profit before income taxes of $166 million for the year. The company also announced that due to the strong financial results, the board of directors has declared a dividend of 40 cents per share to be paid in full on May 21, 2015 to shareholders of record at the close of business on April 30, 2015.

As quoted in the press release:

During the fourth quarter of fiscal 2015, the Company generated strong free cash flow of $108 million and free cash flow per share of $1.27 (2014:$30 million or $0.36 per share). During the full year of fiscal 2015, the Company generated free cash flow of $183 million and free cash flow per share of $2.15 (2014: $44 million and $0.52 per share).

The Company recorded profit before income taxes of $48 million in the fourth quarter (2014 – $7 million), and a consolidated net loss attributable to shareholders of $(1) million or $(0.01) per share (2014 – $(8) million or $(0.09) per share).

The Company recorded profit before income taxes of $166 million for the year (2014 – $4 million), and net profit attributable to shareholders from continuing operations of $66 million or $0.78 per share for the year (2014 – $(23) million or $(0.27) per share). Included in net profit attributable to shareholders was the impact of foreign exchange on income tax expense.

The fourth quarter saw a continued good performance at the Ekati Diamond Mine in terms of grade and recovery, which were both higher than planned. The Company estimates that the process plant improvements that it has implemented have increased the recovered grade of reserve and resource material by approximately 15 percent during the 2015 fiscal year.

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