Burgundy Diamond Mines (BDM) H2 2024 earnings summary

Executive summary

• 2024 saw 4.9 million carats sold (up 3%-4% year-over-year) despite an 8% lower head grade and 10% lower carat production, with operations transitioning from Sable to Point Lake and continued focus on Misery Underground.

• Revenue declined 6% year-over-year to $442.1 million, outperforming a 25% drop in global diamond prices, with EBITDA at $53 million and a $151.6 million impairment charge driving a $97.3 million net loss.

• Major productivity improvements included a 10% increase in payloads, an hour gain in shift productivity, and a 20% workforce reduction, helping reduce unit costs.

• Convertible notes were repaid, and an environmental trust of $58 million was established, providing tax credits and strengthening the balance sheet.

• Transition to Point Lake open pit is expected to reach full production in early to mid-2025, with Misery Underground continuing to deliver high grades and mine life extension drilling ongoing.

Financial highlights

• Revenue: $442.1 million, down 6% year-over-year; EBITDA: $53 million, impacted by a $151.6 million impairment; net loss: $97.3 million.

• Revenue per carat declined 9% year-over-year to $92.

• Net cash position fell from $94.4 million to $25.1 million at year-end, mainly due to capex, environmental bonds, and note repayments.

• All-in sustaining cost per carat was $92 in 2024, with a target to reduce to $70-$75 per carat (including capex) in coming years.

• $98.5 million was invested in property, plant, and equipment in 2024.

Outlook and guidance

• 2025 outlook anticipates commercial production at Point Lake in May and increased production at Misery Underground.

• Capital program for 2025 is 25% lower than 2024, with further reductions possible.

• Free cash flow is expected in 2025, contingent on modest price growth and market conditions.

• Life of mine plan updates, including Misery extension and Point Lake, are expected by end of Q2, with mine life projected into mid-2030.

• Guidance for 2025 will be finalized after ongoing work at Misery and Point Lake, likely by the April Q1 call.