Ekati’s rough diamond sales took a major hit in the fourth quarter of 2024 as buyers increasingly shied away from lower-quality goods, according to mine owner Burgundy Diamond Mines.
Revenue from the Canadian deposit plummeted 39% year over year to $101 million for the three-month period ending December 31. Sales volume also declined 39% to 1.1 million carats, down from 1.8 million carats in the same quarter of 2023. Despite this drop, the average price remained relatively stable at $92 per carat.
Burgundy attributed the steep decline to an unusually strong comparison period in 2023, when excess inventory was sold off. Additionally, lower-quality goods offered at recent tenders failed to find buyers, contributing to the downturn.
During the quarter, the company sold a selection of high-value fancy-vivid-yellow diamonds, including stones weighing 36, 14.8, and 11.3 carats. However, overall output declined by 17% to 1 million carats between October and December. Over the same period, Burgundy held two auctions and sold rough through alternative channels.
For the full year, production fell 2% short of company projections, and the average price per carat dropped 10% from 2023 levels. As of year-end, Burgundy held rough diamond inventory valued at $63.3 million.
Looking ahead, the company plans to hold three auctions in the first quarter of 2025 and will release its full-year production guidance within the same timeframe. Additionally, a long-term mine plan expected in the second half of 2025 may extend the life of the Ekati deposit into the mid-2030s.
As the diamond industry grapples with shifting demand, the big question remains: Can Ekati rebound, or is this a sign of a broader market shift away from lower-tier rough diamonds?