ASX-listed Burgundy Diamond Mines has navigated a turbulent diamond market with resilience, reporting a modest revenue decline despite broader industry struggles. 

The company’s flagship Ekati diamond mine, in Canada, has proven its strength amid a backdrop of falling global diamond prices.

In its annual report, filed with the Australian exchange on Monday, Burgundy revealed a 6% drop in revenue for the year ended December 31, 2024. This is in contrast to the broader market, where diamond prices plunged about 25% year-on-year.

“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%,” said CEO and MD Kim Truter.

The relatively strong performance of Burgundy has been attributed to the high-quality diamonds produced at Ekati, Canada’s first surface and underground diamond mine, which continues to outperform industry trends.

“This is a testament to the quality of Ekati diamonds and the benefits of operating in the Canadian jurisdiction,” said Truter. “This also underscores how the Ekati product generally outperforms the market, making the asset more resilient to market headwinds.”

Ekati reached a major milestone in 2024, surpassing 100-million carats produced and sold over its 26-year history. The mine remains a key contributor to Burgundy’s standing as the largest G7 producer of natural diamonds, accounting for about 4% of global rough diamond supply.

“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,” Truter added.

Burgundy also strengthened its financial position over the past year, implementing several strategic initiatives to bolster its balance sheet. These included renegotiating mine closure provisioning terms under a Surety Agreement to align with the current life-of-mine plan, establishing an environmental trust account for tax efficiency, and reducing debt by about $123-million since June 2023.

Meanwhile, operational transitions are underway at Ekati. The company has begun shifting production from the Sable openpit to the new Point Lake openpit, which is expected to complement the existing Misery underground operation. The two sites’ proximity is set to enhance efficiencies by reducing haul distances and optimising ore transportation to the processing plant.

Looking ahead, Burgundy remains optimistic about improving market conditions. “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 realisation,” said Truter.