UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13A-16
OR
15D-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of May, 2016 |
Commission File Number: 001-33838 |
DOMINION DIAMOND CORPORATION |
(Translation of registrant's name into English)
P.O. Box 4569, Station A Toronto, ON, Canada M5W 4T9 |
(Address of principal executive offices) |
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ⃞ Form 40-F ⊠
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ⃞
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ⃞
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ⃞ No ⊠
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): N/A
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
DATED the 25th day of May, 2016.
DOMINION DIAMOND CORPORATION |
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(Registrant) | ||||
By: |
/s/ Kevin Chan |
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Name: |
Kevin Chan |
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Title: |
Vice President, Group Tax and Treasury |
EXHIBIT INDEX
EXHIBIT |
DESCRIPTION OF EXHIBIT |
|
99.1 |
News release dated May 25, 2016 - Dominion Diamond Corporation reports Fiscal 2017 First Quarter Sales and Ekati Production Results |
Exhibit 99.1
Dominion Diamond Corporation Reports Fiscal 2017 First Quarter Sales and Ekati Production Results
YELLOWKNIFE, Northwest Territories--(BUSINESS WIRE)--May 25, 2016--Dominion Diamond Corporation (TSX: DDC, NYSE: DDC) (the “Company” or “Dominion”) reports Ekati Diamond Mine and Diavik Diamond Mine first fiscal quarter 2017 (February through April) sales and Ekati Diamond Mine production results. Unless otherwise specified, all financial information is presented in U.S. dollars.
Highlights
Sales
Ekati and Diavik Rough Diamond Sales
The
Company recorded total first quarter sales of $178.3 million ($187.7
million in Q1 fiscal 2016). Two rough diamond sales were held during the
quarter. After lowering prices by 5% in the Company’s January sale, in
line with the market, prices quickly recovered and ended the first
quarter on average approximately 8% higher than they started the fiscal
year. The Company plans to hold three rough diamond sales in the second
fiscal quarter of 2017.
Q1 FY 2017 Summary
Sales in millions of US dollars |
Three months ended
Apr 30, 2016 |
Three months ended
Apr 30, 2015 |
||
Ekati Rough (100% basis) | $105.1 | $127.4 | ||
Diavik Rough (40% basis) | $ 73.1 | $60.3 | ||
Total Sales | $ 178.3 | $187.7 | ||
Carats Sold (000s) |
||||
Ekati Rough (100% basis) | 1,545 | 710 | ||
Diavik Rough (40% basis) | 1,055 | 544 | ||
Total Carats Sold | 2,600 | 1,254 |
The Diamond Market
Market conditions in the
rough diamond market during the first quarter improved significantly as
inventories were replenished by manufacturers in response to a positive
retail season at the end of 2015. Consequently the downward pressures on
prices faced last year were reversed which bodes well for more stable
market conditions in fiscal 2017. The U.S. jewelry market was at the
forefront of demand growth during the period and, despite the impact of
uncertain economic growth on sentiment, sales in mainland China remained
reasonably steady, conversely the Hong Kong and Macau markets faced
considerable headwinds. Other major retail markets were mixed with some
more resilient in local currency terms but adversely impacted by the
strong U.S. Dollar.
Ekati Production
Ekati Diamond Mine Production (100% basis) |
For the three months ended Apr 30, 2015 | |||||||||||
Pipe |
Ore Processed (000s tonnes) |
Carats(1) (000s) |
Grade(1) (carats/tonne) |
Ore Processed (000s tonnes) |
Carats(1) (000s) |
Grade(1) (carats/tonne) |
||||||
Misery Main | 75 | 204 | 2.72 | - | - | - | ||||||
Pigeon | 248 | 109 | 0.44 | - | - | - | ||||||
Fox | - | - | - | 1 | 0.2 | 0.25 | ||||||
Koala | 314 | 197 | 0.63 | 228 | 222 | 0.97 | ||||||
Koala North | - | - | - | 53 | 30 | 0.57 | ||||||
Misery Satellites | 335 | 566 | 1.69 | 243 | 340 | 1.40 | ||||||
Coarse Ore Rejects(“COR”) | - | - | - | 327 | 212 | 0.65 | ||||||
Total | 972 | 1,076 | 1.11 | 851 | 804 | 0.94 | ||||||
(1) As different ore sources are blended during processing, carats and grade per pipe are estimated using the block models for the ore processed from each pipe, adjusted for the overall reconciliation of total carats recovered against the model. The total carats produced include all incremental production arising as a result of the changes made to the Ekati process plant to improve diamond liberation. |
Diavik Production
The Diavik Diamond Mine
production results for the first calendar quarter of 2016 were released
on April 18, 2016. Diavik reports to the calendar year ending December
31, and Ekati reports to the fiscal year ending January 31. The Company
does not report Diavik fiscal production results.
Cautionary Statement Regarding Preliminary Results
The
Company cautions that the Company’s first quarter sales results
disclosed in this news release are preliminary and reflect expectations
as of the date of this news release. Actual reported results are subject
to final review and may vary from what is currently expected because of
a number of factors, including, without limitation, additional or
revised information and changes in accounting standards or policies or
in how those standards are applied. In addition, the preliminary results
contained in this news release do not include all of the measures of
financial performance that would be disclosed in the Company’s interim
financial statements. The Company will provide additional financial
information and related discussion and analysis about its first quarter
financial results when it reports those actual results.
Forward-Looking Information
Certain information
included herein, including information about mining activities and
estimated production from the Ekati Diamond Mine, constitutes
forward-looking information or statements within the meaning of
applicable securities laws. Forward-looking information is based on
certain factors and assumptions including, among other things, the
current mine plan for the Ekati Diamond Mine; mining, production,
construction and exploration activities at the Company’s mining
properties; currency exchange rates; world and US economic conditions;
future diamond prices; and the level of worldwide diamond production.
Forward-looking information is subject to certain factors, including
risks and uncertainties, which could cause actual results to differ
materially from what the Company currently expects. These factors
include, among other things, the uncertain nature of mining activities,
including risks associated with underground construction and mining
operations, risks associated with joint venture operations, risks
associated with the remote location of and harsh climate at the
Company’s mining properties, risks resulting from the Eurozone financial
crisis, risks associated with regulatory requirements, the risk of
fluctuations in diamond prices and changes in US and world economic
conditions, the risk of fluctuations in the Canadian/US dollar exchange
rate and cash flow and liquidity risks. Actual results may vary from the
forward-looking information. Readers are cautioned not to place undue
importance on forward-looking information, which speaks only as of the
date of this disclosure, and should not rely upon this information as of
any other date. While the Company may elect to, it is under no
obligation and does not undertake to, update or revise any
forward-looking information, whether as a result of new information,
further events or otherwise at any particular time, except as required
by law. Additional information concerning factors that may cause actual
results to materially differ from those in such forward-looking
statements is contained in the Company's filings with Canadian and
United States securities regulatory authorities and can be found at www.sedar.com
and www.sec.gov, respectively.
About Dominion Diamond Corporation
Dominion Diamond
Corporation is the world’s third largest producer of rough diamonds by
value. Both of its production assets are located in the low political
risk environment of the Northwest Territories in Canada where the
Company also has its head office. The Company is well capitalized and
has a strong balance sheet.
The Company operates the Ekati Diamond Mine and also owns 40% of the Diavik Diamond Mine. Between the two mining operations, diamonds are currently produced from a number of separate kimberlite pipes providing a diversity of diamond supply as well as reduced operational risk. It supplies premium rough diamond assortments to the global market through its sorting and selling operations in Canada, Belgium and India.
For more information, please visit www.ddcorp.ca
CONTACT:
Dominion Diamond Corporation
Ms. Kelley Stamm,
416-205-4380
Manager, Investor Relations
kstamm@ddcorp.ca