Crews reach ore in the Point Lake open pit, the 10th mine at Ekati.

Burgundy Diamond Mines Ltd. Jan. 28 announced its fourth-quarter results from the Ekati diamond mine in Northwest Territories, closing out its first full calendar year of production since acquiring the operation in mid-2023, resulting in strong sales and operational milestones despite broader market challenges.

As the new operator of Canada's first diamond mine, Burgundy has spent the past year optimizing production, advancing mine life extension projects, and maintaining steady output at Ekati, a world-class mine roughly 300 kilometers (186 miles) northeast of Yellowknife that has produced over 100 million carats of diamonds since mining began in 1998.

After 26 years, sustaining operations meant transitioning from Sable – Ekati's ninth operational mine, which is nearing depletion – to Point Lake, Burgundy's tenth and newest mine, to support future production. This shift in ore sources impacted grades and recoveries, shaping the latest quarterly production results.

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

As the company continues to familiarize itself with the operation, Burgundy reported lower production and sales compared to the same period in 2023, with 1.02 million carats recovered during the final three months of 2024, down 17% from 1.24 million carats a year prior.

This decline was primarily due to lower ore grades, with carats recovered per metric ton processed dropping 11% year-over-year to 1.05 carats per metric ton.

Carats sold also declined significantly, with 1.1 million carats sold over two sales events, marking a 39% decrease from 1.79 million carats in Q4 2023. The company achieved an average price of $92 per carat, generating total proceeds of $101 million (A$162 million).

Despite a 12% reduction to 0.97 million metric tons of ore mined and a 7% drop to 0.98 million metric tons processed, Burgundy maintained stable operational efficiencies. However, these factors contributed to an adjusted EBITDA of $20.5 million (A$33.0 million) for the quarter. The company closed the period with $25.1 million (A$40.4 million) in cash reserves.

"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," said Truter. "Given the environmental trust account setup, and payments made during 2024, Burgundy now has around US$27 million tax benefit heading into 2025, which significantly reduces, if not eliminates the company's 2024 tax obligation."

Burgundy's operational strategy has remained focused on extending Ekati's mine life, with multiple projects advancing in parallel: development at Point Lake continues with optimizations to its mining configuration, reducing the waste-to-ore stripping ratio to improve efficiency in 2025; drilling at Misery Main wrapped up, shifting focus to the Southwest extension, where bulk sampling is underway to refine resource estimates; and prefeasibility studies for the Sable and Fox underground projects remain on track, with results expected in the second half of 2025 and early 2026, respectively.

Looking ahead, Burgundy is preparing for a bulk sample at Point Lake this quarter to refine ore processing estimates, along with an additional bulk sample at Misery Southwest to further evaluate grade and diamond quality.

The company has also scheduled three diamond auction events for the first quarter and expects to release its first mine plan by the end of March, with a longer-term plan anticipated later in the year, potentially extending Ekati's mine life into the mid-2030s.

"The company's strategy has remained the same, including leveraging an asset with exceptional infrastructure and remaining Mineral Resources in one of the great diamond fields," the Burgundy CEO added. "2025 will be important for the organisation, as the results of Burgundy's mine life extension work come to fruition."