Performance Highlights

While most of this Corporate Social Responsibility Report covers company performance during the 2015 calendar year, our fiscal year closes at the end of January. The financial results shown below reflect performance for the years ended January 31, 20151 and 2016.

Sales

(in millions of US dollars) bar chart

Operating Profit

(in millions of US dollars) bar chart

Adjusted EBITDA2

(in millions of US dollars) bar chart
  1. Fiscal 2015 figures have been restated as a result of retrospective application of a voluntary change in accounting policy related to asset retirement obligations.
  2. The term “EBITDA” (earnings before interest, taxes, depreciation and amortization) does not have a standardized meaning according to International Financial Reporting Standards (“IFRS”). The company discloses Adjusted EBITDA, which removes the effects of impairment charges, foreign exchange gains (losses) and exploration costs from EBITDA.
  • There was perhaps no more significant achievement in fiscal 2016 than the progress made at the Misery Main pipe, the richest ore body on the Ekati property. We met all development timelines, leading to commercial production being declared for the Misery Main pipe in May 2016, ahead of plan. The story of Ekati at this stage in the mine plan was always about accessing Misery Main’s cash-generating ability, which we expect to realize beginning in the second half of fiscal 2017.
  • We entered fiscal 2016 knowing that it would be a transitional year for the Ekati mine. As per the mine plan, production shifted from higher value ore to lower value material from the Misery Satellite pipes and coarse ore rejects, resulting in lower gross margins. As it happened, this shift in production coincided with a softening of the global diamond market. Prices declined by about 10% during the fiscal year and this, together with the substantial number of low value carats produced, resulted in an impairment charge on Ekati’s work-in-process inventory at the end of the year.
  • Despite the challenges, adjusted EBITDA was positive for the year, buoyed by decreased cash operating costs resulting from the weak Canadian dollar, operational improvements at the Ekati mine and strong adjusted EBITDA generated from our 40% share of the Diavik mine.
  • The Company ended the year with a strong balance sheet, with sufficient capital on hand for current budgeted capital expenditure and reclamation plans. We were very pleased to return value to our shareholders through an annual dividend of US $0.40 per share.

Learn more

2016 Annual Report