Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

Dominion Diamond Corporation (NYSE:DDC)

F4Q2014 Results Earnings Conference Call

April 3, 2014, 8:30 a.m. ET

Executives

Richard Chetwode - Vice President of Corporate Development

Robert A. Gannicott - Chairman and Chief Executive Officer

Wendy Kei - Chief Financial Officer and Corporate Controller

Chantal Lavoie - President of Dominion Diamond Ekati Corporation and Chief Operating Officer of Dominion Diamond Ekati Corporation

James R. W. Pounds - Executive Vice President of Buying & Sourcing and President of Dominion Diamond Marketing Corporation

Brendan Bell - President of Dominion Diamond Holdings Ltd

Analysts

Des Kilalea - RBC

Nancy Hilliker - Citigroup

Edward Sterck - BMO

Brian MacArthur - UBS

Tanya Jakusconek - Scotiabank

Tyler Broda - Nomura

Ned Davis - William Smith & Company

Richard Hatch - RBC

Operator

Good day, ladies and gentlemen, and welcome to the Dominion Diamond Corporation's Fiscal 2014 fourth quarter and year-end earnings results conference call.[Operator instructions.] And now I’d like to turn the call over to Richard Chetwode, vice president, corporate development and head of investor relations. Please go ahead.

Richard Chetwode

Thank you, operator. Good morning, everyone, and welcome to our fiscal 2014 fourth quarter and year-end results conference call. On the call today is Bob Gannicott, chairman and CEO; Wendy Kei, chief financial officer; Chantal Lavoie, president and chief operating officer of the Ekati Mine; Jim Pounds, president, diamond sales; and Brendan Bell, president, Dominion Diamond Holdings Ltd, all of whom will be available to answer questions after the presentation.

Before we begin, I would like to point out that this conference call will include forward-looking information. Various material factors and assumptions were used in arriving at this information and actual results could differ materially.

Additional information about these factors and assumptions and the risks that could cause actual results to differ materially from our current expectations are detailed in our most recently filed Annual Information Form and MD&A, which are publicly available. Our most recent results also include a reconciliation of certain non-IFRS financial measures to the most directly comparable IFRS measures.

With that, I'll hand the call over to Bob Gannicott.

Robert Gannicott

Thanks, Richard. Good morning everyone, and welcome to our investor call for the fourth quarter of our financial year 2014, as well as for the full year period. In the fourth quarter, our consolidated diamond sales were 6% above forecast.

In addition, some of the material processed at Ekati was derived from mineralization delivered from the waste stripping at the Misery pit in preparation for the mining of ore from that pit in 2016. If the diamonds recovered from this stripping material that are subsequently sold were to be included, then we would be 11% above forecast for the quarter.

For the full year, sales were slightly ahead of plan, and Wendy will take us through the details on all of this shortly. We continue to advance our Jay project, which beyond Misery and Pigeon represents the future at Ekati.

A drilling program, which is still underway, is defining the footings for various potential dike alignments to facilitate the mining of Jay while other drills are obtaining geotechnical information to inform the design of the Jay open pit and therefore the ore reserve. This work will be completed well before breakup of the ice in late June.

We’re pleased that welcome Fiona Perrot-Humphrey to our board of directors. Fiona has a long history as a mining equity analyst in both South Africa and then in London, and she’s currently a senior advisor to NM Rothschild in London.

I’m now going to turn the call over to Wendy to discuss the financial results. She’ll be followed by Chantal to discuss the mining operation, then Jim on diamond sales, followed by Brendan on permitting progress for Jay. I’m then going to return to close the call ahead of taking your questions.

Wendy Kei

Thank you, Bob, and good morning everyone. We ended the fiscal year with strong production from the Diavik and Ekati diamond mines, both of which were higher than forecast, with consolidated sales of $233.2 million, which were stronger than what we anticipated at the end of Q3, so we still held over a portion of rough diamonds at year end, which Jim will talk about in more detail.

I will first talk about the quarterly results and then discuss the year as a whole. Let me point out a couple of points about Dominion’s fiscal 2014 P&L. The 2014 results have been heavily impacted by the accounting treatment of the acquisition of Ekati, such as acquisition inventory being valued at market price and charges, bank financing, and restructuring fees related to that acquisition.

Together with accounting treatments of noncash foreign exchange movements from the weaker Canadian dollar, this has made the P&L rather muddy, so to give some guidance, without the impact of Ekati or foreign exchange related to accounting treatment, Dominion would have had estimated earnings of approximately $0.51 per share for the full year.

We had strong fourth quarter sales of $233.2 million, cash cost production of $144.6 million, which helped drive EBITDA of $76.2 million in cash provided by operating activities of $64.4 million.

Fourth quarter sales were 6% higher than forecast and rebounded from the prior quarter. Sales were stronger than expected due to combination of diamond price, increased volume from Diavik, and better than anticipated grades at Ekati.

Cash costs at both operations were lower than forecast, partly due to the weakening of the Canadian dollar and [sometimes] (ph) to sensitivity of foreign exchange movements, a fall of $0.10 in the Canadian dollar against the U.S. dollar would equate to operating cost savings for the group as a whole of approximately $35 million.

The fourth quarter sales figure does not include the karats produced from the Misery South and Southwest kimberlite pipes, as we consider this to be in preproduction. During preproduction sales, sales and costs for Misery South and Southwest karats have been applied as a reduction of mining assets.

During the fourth quarter, the company sold an estimated 0.2 million karats of Misery South and Southwest for an estimated total of $10.8 million. Had the company included these sales, our gross margins would have been $8.7 million higher.

During the fourth quarter, the company spent $3.3 million on exploration, $3.1 on the Jay pipe within the buffer zone at the Ekati diamond mine, and $0.2 million on the company’s claims in the Northwest Territories.

Our fourth quarter results have been impacted by the weakening of the Canadian dollar, which has gone from $0.96 to $0.90 in the period. The significant weakening of the Canadian dollar resulted in a foreign exchange loss of $7.9 million during the quarter compared to a foreign exchange gain of $0.1 million in the prior year.

The foreign exchange line is impacted by the noncash revaluation of the Canadian dollar denominated monetary items such as cash. In addition, included in net income tax expense of $19 million was $13.5 million of tax expense related to the weakening Canadian dollar. A substantial portion of this is noncash.

This additional noncash tax expense is recognized on temporary differences, from the difference between the historical exchange rate and the current exchange rate translation of foreign currency nonmonetary items such as [unintelligible], plant, and equipment.

Now turning to our Diavik segment, during the fourth quarter, we sold 1 million karats of rough diamonds with a market value of $119.2 million and a cost of goods sold of $87.7 million, resulting in gross margin of 26.4% and EBITDA of $59.3 million. Production was 9% higher and karats sold were 27% higher in the fourth quarter than the comparable quarter the prior year.

Average price per karat was 14% lower than the prior year, primarily from a change in the sales mix of the products sold, partly offset by an increase in market price for the rough diamonds in the fourth quarter.

The company saw an improvement in the rough diamond market during this quarter, leading to an increase in Diavik karats sold of almost 2.5 times compared to the third quarter. At the end of the fourth quarter, we had $47 million of Diavik inventory available for sale, with an estimated market value of $65 million.

Now turning to Ekati, during the fourth quarter we reported sales of $114 million, which was in line with our forecast, generating EBITDA of $24.4 million. Our average price per karat was $276, which was 60% higher than our forecast, due to a change in the sales mix of the products sold.

Fourth quarter sales would have been $124.8 million, with operating profit of 7.2% and gross margins of 5.7%, had we included the sales from the karats sold from the Misery satellite pipes. At the end of the fourth quarter, we had $128 million of Ekati inventory on hand, with an estimated market value of $140 million.

Now turning to our annual results, this has been a year of transition for the corporation that saw the sale of our luxury brand segment to Swatch and the acquisition of the Ekati diamond mine from BHP. We reported fiscal sales of $751.9 million, and cash cost of production of $466.6 million, which supported EBITDA of $191.7 million.

Cash provided by continuing operating activities was $202 million for the year, which has increased our cash balance in support of our future capital projects. During the quarter, the company spent $14.6 million in exploration, of which $10.1 million is related to the exploration of the Jay pipe within the buffer zone and $4.5 million in the company’s claims in the Northwest Territories. All Jay-related exploration expense will continue to be expensed until a successful pre-feasibility study is completed.

For fiscal 2014, the company’s net profit attributable to shareholders was $479.7 million, or $5.64 per share compared to $34.7 million or $0.41 per share for the prior year. Included in net profit attributable to shareholders is a gain of $502.9 million or $5.91 per share, related to the sale of our luxury brand segment.

The company’s net loss from continuing operations attributable to shareholders was $23 million or $0.27 per share, with EBITDA of $191.7 million. Included in the consolidated net loss were a number of after tax expenses related to the Ekati diamond mine acquisition. The first was transaction fees of $11.4 million and a $3.2 million expense related to the restructuring of the Antwerp, Belgium office, both of which are included in SG&A.

Second was a $10.6 million expense related to the cancellation of the credit facility that had been previously arranged in connection with the Ekati acquisition, which has been reported as part of financing expense.

Excluding these items, the impact of the sale of opening acquisition inventory, and the accounting treatment for noncash foreign exchange movements, the company estimates consolidated net profit from continuing operations attributable to shareholders for the year would have been $44.8 million or $0.51 per share. Moving forward, we expect normalized SG&A for all segments to be approximately $30 million to $35 million for the year.

As explained earlier, the weakening Canadian dollar has impacted our results of foreign exchange loss of $8.9 million compared to a foreign exchange gain of $5 million in the prior year. In addition, included in net income tax expense of $35.5 million was $20.7 million of tax expense related to the weakening of the Canadian dollar, a substantial portion of which is noncash.

For Diavik, the company sold 3 million karats for $352.3 million with gross margin of 26.8% and EBITDA of $172.6 million. Calendar ’13 was a full year of underground productions for Diavik for all three pipes. The original productions for Diavik was approximately 6 million karats at [100%] that transitioned into 7.2 million at the end of the year.

Success was attributable to the completion of the accelerated ramp for the A418 underground, favorable ground conditions, and mining rates at A1457. At Ekati, since April 10, we have sold a total of 1.3 million karats for $399.6 million, with gross margin of 1.7% and EBITDA of $59.6 million.

Rough diamond sales were in line with our forecast and achieved average price per karat was higher by 20%. Ekati’s production from April 10 to January 31 was higher than budget with more karats from Fox and the higher value [unintelligible] than we originally planned. The company estimates that cost of sales would have been approximately $376.7 million if you exclude the market value adjustment made on acquired inventory as part of the Ekati acquisition.

During the year, the company also sold an estimated 0.2 million karats of Misery South and Southwest for an estimated value of $14.3 million, which, as a reminder, is recorded as a reduction in mining assets.

I’d like to turn to our balance sheet. At January 31, the company had cash and cash equivalents of $224.8 million, restricted cash of $113.6 million and rough diamond inventory with an estimated value of $205 million. The weakening Canadian dollar impacted our restricted cash amount, which is denominated in Canadian currency with a face value of $127 million Canadian.

Also during the past year, the company repaid its senior secured revolving credit facility with standard charters and canceled the facility, which leaves us with very little debt on the balance sheet.

During the year, the company spent $26.6 million on Diavik capital expenditures, mainly related to sustaining capex, and $95.6 million in Ekati capital expenditures, of which $64 million was spent on the Misery project.

In terms of the new year, our share of Diavik operating costs for calendar 2014 is currently budgeted to be $150 million, with capital expenditures of $20 million related to sustaining capex. For 2015, our capital expenditures at Ekati is expected to be $180 million, of which $95 million will be spent on the Misery project, $50 million on the Pigeon project, and $35 million on sustaining capital expenditures.

The Ekati operating costs for fiscal 2015 is estimated to be $340 million. For the next two years, the company anticipates reinvesting a significant amount of capital to complete the Misery pushback to access the Misery main pipe while continuing to develop the Jay project.

Now let me turn the presentation over to Chantal.

Chantal Lavoie

Thank you, Wendy. Good morning ladies and gentlemen. Turning firstly to Diavik, everything is definitely going in the right direction. Mining and processing activities are off to a good start, and the grade achieved is as it should be.

We’re very pleased with the way Mark Cameron and his team continues to focus on maximizing production and achieving cost reductions. On that last point, the team is working on several aspects, including improved energy utilization, heat recovery, removals of bottlenecks in the process plant, and inventory management.

We recently released a mine plan which puts out the production from reserves only through to 2023. Please note that excluded from the mine plan are 2.6 million tons of inferred resources.

Now let me make some comments about Ekati. We made a decision in the autumn to increase the mining capability in the Fox pipe in order to extract the maximum possible amount of ore from the open pit before the spring [fresh up], what we call the snow melt. There’s an area of structural weakness in the northeast zone of the pipe, where kimberlite sits in the pit wall and one has to mine there very carefully, the [unintelligible] of the fresh up being a very serious safety consideration.

I’m pleased to report that the last blast in the pit has just taken place in exactly that northeast zone, and the last 200,000 tons plan to be mined will be completed by the middle of this month. Once this is completed, we will also take the opportunity presented by finishing Fox ahead of schedule to drill Fox deep, which is, as you know, a resource but not included in our current mine plan. Drilling will target the untested deep portion of the pipe in the hopes of discovering a more prospective type of kimberlite.

Development work on the lower level of Koala north is expected to be completed by September of this year, with processing continuing through this calendar year. At Koala underground, we completed the development of the 1810 level at the end of February, and production drilling has commenced in March. As planned, we now have four distinct areas of production at Koala underground.

Last fiscal year, we processed approximately 250,000 tons from Misery South and Southwest kimberlite [unintelligible] within the Misery open pit. Misery South is a circular pipe located 300 meters south of the Misery main pipe and Misery Southwest is an elongated kimberlite body connecting the Misery South and Misery main pipes. Both are being excavated as part of the pushback of the pit at Misery to access Misery main pipe ore, which commences in calendar 2016.

Misery main is a very important ore deposit, because with four karats per ton and $105 per karat, it is one of the richest ore bodies in the world. We have now identified a further small kimberlite pipe within the Misery pit to the northeast of the main ore body. While despite [the small], we ran a bulk sample, and based on the positive results, we have stockpiled approximately 30,000 tons of the Misery northwest material as part of the Misery push back.

The characteristic of the diamonds in these satellite pipes appear to be very similar to the diamonds from the Misery main pipe. It is our intention to drill Misery South, Misery Southwest, and Misery Northeast this summer to see if we can achieve resource status for the satellite bodies.

As for production at Fox, it was finished ahead of plan. We are now able to both increase the mining capability at Misery and also move resources to Pigeon earlier than anticipated. At Pigeon, this has enabled us to start the load realignment and set up the explosive magazine and the lay downs area for the waste stockpile, all earlier than anticipated.

We submitted an amendment to the government for the final waste and water management plan the Pigeon last November, and received approval last week. Prestripping is expected to take at least a year, with the first ore mined in October of next year.

As shown in our recently published mine plan, we believe that the Ekati plan runs optimally at 4.35 million tons per annum. We believe that we will achieve better recovery at this rate as compared to operating at higher rates of throughput, which the plan has been running at before, which was encouraging inefficiencies.

Running the plant slower improved recovery. We have slowed down the throughput through the HMS and will also be expanding its capacity later this year. We’re also expanding our grease table capacity to capture more small diamonds, and we’re still looking at whether we should be using a 1 mm seed size.

There used to be a [recrush] capability at Ekati for capturing oversized material, small diamonds still trapped in large pieces of kimberlite between 8 and 25 mm, and which went straight to the tailing [unintelligible] or rejects. We’re in the process of reestablishing this recrush capability to send this oversized material back to the high pressure grinding roll crusher.

In the last six months, we have instituted more stringent operating parameters around the recovery and we upgraded the X-ray machines, all of which we believe have contributed to better recoveries. Overall, the team is working really well, and I’m pleased with the direction we’re moving in.

I will now pass the call to Jim to discuss the diamond market in more detail.

James R. W. Pounds

Thank you, Chantal. During the final quarter of the fiscal year, we held three sales in Antwerp and three sales in India. Approximately 60% of the goods were sold by direct allocation, and the remainder by tender. In our experience, tenders work in a rising market and are a good check to confirm market prices, and they work well for small quantities of rough diamonds. But conversely, they do not work well in more stable or weaker markets or with a large amount of production where manufacturers need a regular critical mass.

We are now combining the two productions from Ekati and Diavik and selling these productions together using the direct allocation methodology that has worked well for our share of the goods from Diavik but maintaining the option to hold tenders, possibly biannually, for certain parcels where prices have moved strongly either way, to confirm our own market prices.

We’re continuing to grow our sorting capacity in India, where we now employ approximately 30 sorters, and where we sort in excess of 50% of our rough diamonds by volume. This uniquely places us as a mining company in our major market, which both allows us to react quickly to changing market conditions, since price volatility is often greater at the cheaper end of the market, and being based in India allows us to be more competitive in lower-value market goods where the cost of sorting is a higher proportion of the final product.

We retain sorting capability in Toronto and continue to build on our sorting capability in Yellowknife in order to bring these skills to the Northwest Territories where we have our headquarters. Longer term, our focus will be on the world’s major market in India and in the Canadian north.

Last year was a year of two [unintelligible] for diamond pricing, with the increases in rough and polished prices in the first half of the year based on the underlying fundamentals being negated in the second half by macroeconomic and banking issues, which had a negative impact on the availability of credit in the all-important Indian diamond cutting industry.

Overall, for calendar 2013, rough prices were flat. On a comparative basis, average rough prices in 2013 were approximately flat compared to 2012. In December 2013, we began to see the diamond market strengthening, principally as a result of encouraging U.S. fourth quarter sales of diamond jewelry.

However, the positive mood impacting the whole diamond market in the early part of 2014 has been quite dramatic. Profitability has returned to the middle of the pipeline, especially for manufacturers, who during the second half of last year were being squeezed by the lack of credit, which in some cases meant they were forced sellers.

Now they are selling polished diamonds into a confident demand based on restocking following a very successful U.S. holiday season. We also saw some excellent sales figures of diamond jewelry from the big retailers in China during the important Chinese New Year period, which more recently has been followed by a positive report from the Hong Kong show in March.

Retail diamond jewelry in Japan continues to struggle in dollar terms, but this is a reflection of currency weakness, and in yen terms, it’s doing very well. Anecdotal evidence suggests there are first signs that retail demand is again growing in India, helped by a stable rupee.

Last year, the Indian demand fell 30% in dollar terms, primarily because of the fall in the rupee. It is often observed that historically, in a balanced market, rough diamond prices rise in dollar terms in times of dollar weakness and fall in dollar terms with a strong dollar.

Rough diamond prices are up approximately 7.4% this year so far, and polished prices are up approximately 3.5%. The benefit of the strength in the market this year is not reflected in the Q4 figures we report here, because we’ve only had one sale in the period, which occurred just as the market was beginning to pick up in January.

That is also why, at the end of January, we still carried over inventory with a market value of $40 million, which was available for sale above and beyond our work in progress. This $40 million is made up as follows: approximately $10 million of samples, some of which are mine samples and some of which we use in our everyday sorting; approximately $10 million of accumulating stock, which predominantly consists of plus 10.8 karat stones, which we usually sell twice a year; and the remainder rough diamonds that could have been sold during the period but were not. With the strength in the market, we are selling down this excess inventory.

As with last year, the greatest strength in polished diamond prices came in the commercial range of diamonds: classic American and Chinese bridal. But whereas last year the prices for the commercial range of diamonds was strong and the prices for the higher qualities were weak, this year everything has moved up, an indication of how polished demand has negated financing issues.

We’ll be holding two sales in the first quarter of this fiscal year, in Antwerp and India, and in addition to the inventory held by the company on January 31, we expect that one shipment delivered during this first quarter will be available for sale during the same period.

With Ekati, because we operate the mine, we take our diamonds into inventory at an earlier stage than those from Diavik. The diamonds being available for sale in Q1 will be those in inventory on January 31, 2014.

I will now pass the call over to Brendan.

Brendan Bell

Thank you, Jim. Before I speak about the Jay project, I wanted to note that the permitting for the Lynx project is well ahead of our original schedule and in fact is close to completion. We’re expecting the water board will send a draft final water license to the minister for a decision in early May, with a decision expected in the summer of 2014. We originally projected a decision by the end of 2014, so we fully anticipate having all required permits well before the planned development of the project in 2015.

We’re also very pleased that the Jay project is proceeding on schedule. By way of short background, the project description report was submitted as planned in October 2013. The project was then referred to environmental assessment through the Mackenzie Valley Environmental Impact Review Board in November. Scoping sessions for the project were held in January, and the review board published a final terms of reference and interim work plan for the project on February 21, 2014.

We’re now focused on a number of key tasks. Bob spoke earlier about the drilling program underway this winter, but we’re also actively engaged with communities and stakeholders on the various aspects of the project, so their views are taken into account as we prepare the final design of the project. Since purchasing Ekati last April, our CEO, Bob Gannicott, myself, and a number of our key senior managers have visited each of our IBA communities on a quarterly basis with our fourth and most recent visits over a two-week period in February.

The IBA communities for the Ekati mine include the [unintelligible] communities of Gameti, Wekweeti, Whati, and Behchoko, the Akaitcho communities of [Bilo] and [Beta] located close to Yellowknife, and Lutselk’e on the eastern shore of Great Slave Lake, also [unintelligible] a [unintelligible] community located in the Copper Mine River watershed, and financial the North Slave [unintelligible] alliance, another of our IBA groups whose members live primarily in Yellowknife.

In addition to the public meetings we had in each of our communities in February, we also held successful workshops with each community group in March to seek detailed input on the issues of importance to these communities, such as the fish out and dewatering of a portion of [unintelligible], the alignment of roads to minimize impact on caribou movement and migration, and the incorporation of traditional knowledge into the project.

Finally, we’re working with our consultants, Golder Associates, to prepare the developer’s assessment report, or DAR, that will detail all aspects of the project for the environmental assessment as per the terms of reference issued in February. We intend to submit the DAR to the board in the third quarter of 2014.

And once we submit the DAR to the review board, the analytical and hearing phases of the environmental assessment process are expected to take 10 to 12 months. The board will then make a recommendation to the minister, with the decision expected in the fourth quarter of 2015.

Once this decision is issued, we expect the water license and land use permitting process to take six to eight months. Based on our current schedule, we anticipate having the necessary permits in hand to begin construction in the third quarter of 2016.

Bob also noted the responsibility for managing public land, water, and resources in the Northwest Territories transferred to the government of the Northwest Territories on April 1 of this year. We have a very good working relationship with the GNWT, and have worked closely with them so they better understand the Jay project and also the schedule we’re working towards for the project.

Thank you, and I’ll now pass the call back to Bob.

Robert Gannicott

Thanks, Brendan. So we’re obviously pleased that both of our assets are performing beyond the expectations set for them. At Diavik, which is now 100% underground mining, production has settled into a comfortable pattern that allows continuous improvement to focus on production gains and cost reductions.

The improved market conditions have brought the A21 kimberlite into focus again as a supplement to the underground production in the later years of the mine’s life. A revised feasibility study is under preparation for consideration by Rio Tinto’s investment review process later this year. As well as being profitable in its own right, A21 would bring added security to the Diavik timeline.

At Ekati, we’ve been pleasantly surprised so far by improvements in both grade and diamond value compared to the purchase model. We’d always expected the next two years to be close to revenue neutral as we fund the development of Misery to deliver a surge of revenue in 2017 that more than covers the Jay capital development program.

The results to date certainly justify that view. Our balance sheet is strong, and it is especially appropriate that it should be so at this juncture. We have capital investments to make at Misery and Pigeon before production from these is realized. The capital requirements for Jay will grow over the next years once an ore reserve has been formally declared.

I view it as probably that Rio Tinto will elect to develop A21 as well. The reclamation bonds for Diavik, which is our 40% share, and Ekati are currently $65 million and CAN127 million respectively. We currently have cash against the Ekati bond. With the transition to responsibility for these to Yellowknife from Ottawa, we expect to have to fund our $65 million share of Diavik and the previously agreed increase to CAN260 million for Ekati.

We may be able to find an acceptable alternative to cash or letters of credit to support these obligations, but this would involve discussions with the newly created administration here in the Northwest Territories. Until Jay can become an ore reserve, we have a limited reserve life to support debt, but our capital and reclamation obligations are clearly defined. We will of course review the usual options to return money to shareholders.

The devolution of resource management power and revenue from the federal government to the government of the Northwest Territories became reality just two days ago, on April 1. This brings a small, nimble, and motivated administration to bear on the complexities of resource project permitting. We congratulate Premier [McLeod] on bringing home the result, and look forward to working with him, his cabinet, and his administration in building a profitable future for Canadian diamond mining.

Fiscal 2014 was a year during which the company transitioned as one of the world’s largest pure play diamond mining companies. During this period, the company completed the sale of the Harry Winston luxury brand segment at an enterprise value of $1 billion, at a time when the market was willing to pay top dollar for luxury brands and consumption of luxuries in China was still on the rise.

This coincided with the unique opportunity presented by Global Mining Company selling the Ekati diamond mine because diamonds were, for them, no longer a core asset, even as the underlying supply demand fundamentals are looking increasingly attractive. The company paid a total of $553 million for its interest in Ekati, which included $62 million of cash, $154 million of rough diamond inventory, and $165 million of supply inventory such as fuel, cement and other mining supplies. In other words, almost 70% of the acquisition price was equivalent to the working capital.

The story at Ekati is about this year and next year, completing the pushback of Misery to bring on stream Misery Main, one of the richest ore bodies in the world, and beginning the development at Jay. Meanwhile, the diamond mine, one of the highest-grade diamond mines in the world, continues to deliver excellent results.

In fiscal 2017 and 2018, Diavik and Ekati together will be highly profitable. The opportunity to develop Jay, the largest diamond of first resource in North America, is transformational for this company. Company senior management is completely focused on delivering value from the Ekati diamond mine and the benefits of having a senior management team on hand in Yellowknife are already being demonstrated.

So that’s all from us, and we’re now ready to take your questions.

Question-and-Answer Session

Operator

[Operator instructions.] Your first question comes from the line of Des Kilalea from RBC.

Des Kilalea - RBC

Are you able to give us any indication of Ekati’s production including the Misery South and Southwest, and the [causal] rejects? And then I don’t know if you’re able at this early stage to give any update on capex on A21, I think it used to be $500 million. I’m not sure if there’s any possibility of getting anything at this stage.

Robert Gannicott

First of all, as I think you’re aware, the mineralization that we are processing comes from stripping as we lay back the Misery pit to mine the ore, which is actually the Misery main body at the bottom of it. So we don’t have information on this material that is enough to describe it, even as a mineral resource, let alone as an ore reserve. So it’s hard to be more specific on it, other than to be able to give you some sphere of the number of tons that come out as we go around each year. Chantal?

Chantal Lavoie

We are probably going to be about a third. About a third of the tons are going to come from Misery South and Southwest this year. And you can basically apply historically, you know we’ve been reporting quarter on quarter the results from this material. So if you apply that tonnage, and with the previous results, you’re probably going to see the karats will be on the order of 2.3 million to 2.5 million karats for this year.

And I expect about probably the same amount of tonnage coming out of next year. And then again, it’s just applying the tonnage, using the tonnage, and applying historically the grade that we’ve been recognizing from these zones as we’ve processed them.

Robert Gannicott

The other part of your question, A21, you’re right, A21, the last sort of number that was put up was around $500 million, but Rio now have the view that they’ve got such a lot of experience at building A154 South and the A418 dikes that they could actually act as their own EPCM contractor for A21 instead of it being an outside contractor. And they think there is a significant saving there, perhaps $100 million or even a bit more. But I would stress that this is not at the feasibility study stage yet, and it won’t be until it gets through Rio’s technical review process in the fall of this year.

Operator

And the next question comes from the line of Oliver Chen with Citigroup.

Nancy Hilliker - Citigroup

This is Nancy filling in for Oliver Chen. Could you give us a little bit of color in terms of what you think the diamond market in terms of pricing will look like towards the end of the year and going into next year? And then if you could just give us a little color in terms of your thoughts on the political environment in India? Do you think we’ll see any improvement in that environment this year or next year?

James R. W. Pounds

On the diamond market, you regularly see, as the market restocks at the beginning of the year, an uptick in prices, and we’re very pleased to see how strong it is this year. This normally sort of plateaus for a bit, and then we’ll probably see a further uptick towards the end of the year.

So somewhere in ending the year at between mid-range single digits, between 7% and 10%, will be a very, very positive outlook for the year. And then moving into next year, one would hope that sort of level of interest is maintained. And I feel very encouraged by what I’ve seen so far, particularly driven, as I said in my commentary, by the restocking after the U.S. sales and the Chinese sales.

But what we’ll also see is interest returning to the very important Indian diamond market. And I’m stressing the importance of the Indian diamond market at the retail level, because India takes all ranges of diamonds, and particularly interested in the top end. And I think the indication that we’ve seen in the movement, in the top end of diamonds this year, probably extends from resurgence of return of demand in India.

On the Indian political scene, as we head towards the elections there, I would probably be a little bit concerned to actually predict the outcome of those, but I think we’re seeing quite a positive push towards the business-friendly BJP party. And we’re very, very encouraged to see what Narendra Modi did for Gujarat and hope that his business positive attitude will be translated into the greater good of the whole country.

Operator

And your next question comes from the line of Edward Sterck of BMO.

Edward Sterck - BMO

The first relates to the diamonds produced from the Misery satellite pipe and tailings. This year the revenues from those were offset against capex. Can we expect similar treatment for next year? And is that incorporated into the guidance that’s provided?

Wendy Kei

We are required to net the sales and costs for this Misery South and Southwest satellite pipe until it becomes what we call commercial production, defined by the accounting rules. It is included in the guidance, but we didn’t hit commercial production in Q1. We have to reassess that, because commercial production is defined by karats and the length of time, and we didn’t reach it in Q1. So we’re going to have to reassess when it goes into commercial production next.

Edward Sterck - BMO

So is there a possibility that we’ll see that being achieved at some point during this year then?

Wendy Kei

Yes, definitely.

Edward Sterck - BMO

And then the next question is just with respect to Diavik. The realized diamond price appears to be coming in below the average that one would calculate using the reserves by volume and the prices that are provided. I expect I’m a little bit off on the [unintelligible] for this year. Is there a rebalancing of what we expect in realized prices at Diavik over the course of the coming year? And I guess that would also apply to the Misery satellite pipes, where if you look at the 200,000 karats sold for $10.8 million in Q4, you end up with an implied price of $54 versus the guidance of $80 to $100 per karat?

Wendy Kei

The 0.2 million karats is probably grounding, and that’s why you’re getting such a low achieved price. It’s not actually quite 200. If you notice, on the MD&A, we said it was 200 for the fourth quarter and 200,000 karats for the year to date. It has to do with rounding.

Edward Sterck - BMO

You’d still be, with additional 50,000 karats, also a reduction of 50,000 karats, it’s still going to be a bit of a stretch to get to the bottom end of that guidance range of $80 to $100 per karat.

James R. W. Pounds

It depends on what level of it we sold. Of course, if we sold some, [unintelligible] already, then the average price would be higher. But obviously selling some of the better [unintelligible] goods, the cheaper, smaller goods being longer to sort, or going through the sorting process, it depends on what sort of balance we had sorted and sold of those.

Robert Gannicott

He’s saying that number doesn’t represent the production number.

Edward Sterck - BMO

So I guess my question is, are we going to see a rebalancing in those figures in subsequent quarters?

Robert Gannicott

Could I just stress that this material is not an ore reserve, so there isn’t a definition of what its grade and value is? That’s a requirement of the 43101 reporting. So we’re not able to really steer you to a prediction of what that future production is. I know that sounds very clumsy, but I’m afraid it’s just sort of the law.

Edward Sterck - BMO

But then just going back to the question on Diavik, then, with respect to the realized prices over the last several reported courses, there have been some [other than] what the indicative prices you’ve provided have been for Diavik production as a whole.

Robert Gannicott

That’s to do with ore mix that’s changed. It’s really because there was more material that was taken out of 418 and less out of 154 South than have been given in the mine plan. The sort of good news was there was a lot more karats come through, because A418 is easier, faster to mine than A154 north, for example, but it also changes the mix of the karats that are produced. And that affects the price that they’re sold at.

Edward Sterck - BMO

So would we be expecting more from the 154 kimberlite this year than previous years, in terms of the balance of the mix?

Robert Gannicott

Yeah, there will be a rebalancing of that coming through for the balance of this year. I know there’s more 154 north coming through, for instance.

Edward Sterck - BMO

And then just a final question, just on expenditure on Jay and Cardinal this year. Can you give us some indication of what you expect with respect to ongoing activities, the permitting, etc.?

Robert Gannicott’

I think the biggest thing that comes up to us this year is that we have to order a mining fleet. The mining fleet will sort of start off being used on the Lynx development, and then we begin the crushing of the waste rock from that next year. But in order to get all that in place, we actually have to put an order in, as it were, for quite a large fleet of mining trucks, one or two shovels, and a couple of big loaders, as well, as I recall.

The fleet hasn’t been defined yet, but expenditure between this year and next year on that will be up towards $100 million. So at the moment, we’re kind of thinking that about half of that will come into this year, the other half next year. Because of course this material has to come up the winter road. Because it has to come up the winter road, we’ve got to place an order for it relatively early in the year and there has to be cash put against securing the order.

That’s as close as I can get right now, because obviously we haven’t even defined what the fleet will be yet, because we don’t have a definition of the open pit yet, because that’s part of the pre-feasibility study.

Operator

And the next question comes from the line of Brian MacArthur of UBS.

Brian MacArthur - UBS

I’m sorry to go back to this Misery stuff again, but I just want to make sure I understand this, because I’m sort of the same as Des at trying to figure this out. Just to be clear, the guidance on Ekati of $180 million capital cost, does that include some credit? Because you sort of say, until you get commercial you’ve got to take the profits from those pipes and credit it. So does that $180 million have a credit in it for part of the year?

Wendy Kei

No, it doesn’t. So that $180 million is our investment into the capital expenditure for Misery main.

Brian MacArthur - UBS

So then we will be able to reduce your capital budget by whatever we think. So if you had $10.8 million in the fourth quarter we’d reduce it by the $10.8 million, because we’re not counting it anywhere else in your guidance? Is that right?

Wendy Kei

That is correct.

Brian MacArthur - UBS

Okay, the next question I have on this, because as you said, I did the same thing. I got the $10.8 million for the fourth quarter and the $14.3 million for the year, so that’s somewhere between $54 and $70 a karat versus the $80 to $100 that you guide. So okay, that’s rounding, I get that. But then there was a statement made I think that said on that $10.8 million, your gross margin in the fourth quarter would have been $8.7 million higher. So it looks like you’re getting a margin of 80% on that stuff? Is that right? And if so, why does it work that way on the accounting?

Wendy Kei

It is correct. And the reason why is we don’t allocate all cost of production to the Misery waste stripping there.

Brian MacArthur - UBS

So if I just took the $180 million going forward for the next, say it takes you six months to get through this, I could have a credit on my capital of $15 million plus and probably a little higher, because the price, as you’re saying, is $80 to $100 versus the $54 to $70 that I got over the last six months? Would that be reasonable, that sort of magnitude?

Wendy Kei

Yes.

Brian MacArthur - UBS

That’s very, very helpful. And then once we switch to commercial, we just flip it over and run it through. Would those margins be sustained going forward on that material, or when it becomes commercial, is the accounting different?

Wendy Kei

When it becomes commercial, the accounting is different.

Brian MacArthur - UBS

Right. So don’t take 80% margins in for the back half?

Wendy Kei

No. [laughter]

Operator

And the next question comes from the line of Tanya Jakusconek from Scotiabank.

Tanya Jakusconek - Scotiabank

Just for Wendy first, just a couple more questions, to be sure. So G&A, you said $30 million to $35 million this year?

Wendy Kei

Correct.

Tanya Jakusconek - Scotiabank

And then what about exploration expenditures this year, given that we have the Jay pre-feasibility going through? What sort of number is going to go through the income statement?

Wendy Kei

We’re anticipating about $25 million going through the income statement for Jay exploration for this year.

Tanya Jakusconek - Scotiabank

But what about the company as a whole? Is there anything else?

Robert Gannicott

That would be the company as a whole.

Tanya Jakusconek - Scotiabank

And then if we’re assuming that the pre-feasibility will be completed by the end of this year or early next, what would be then a normalized exploration number going through your income statement, without Jay?

Wendy Kei

I would say less than $2 million. There shouldn’t be a lot of exploration excluding Jay going forward.

Robert Gannicott

We do have certainly some interesting results in the follow up on the other exploration project that we’ve got. And that will be fairly small expenditures in the next year, hence it’s rolled into the $25 million. But I would expect the year after, we’ll be into drill testing targets, and that might get us up to more like the $5 million level for that year.

Tanya Jakusconek - Scotiabank

And maybe just talk a little bit back to pipe A21, my favorite pipe. What exactly is Rio going to do from now until they have their technical review in the fall? Are we taking that study that was done a few years ago and reviewing that, and then giving an okay on that in the fall, and then releasing that to the market thereafter? Like maybe just a bit more detail exactly what’s going to come with this A21.

Robert Gannicott

There have been some movements in technology on building dikes, and particularly building the cutoff walls, the diaphragm wall that goes inside the pipe. But a lot of this, it comes from experience that was gained from the Meadow Land project, about [unintelligible], over in Baker Lake. You know, a very similar climatic, geographic area.

And one of the big things is, the way that the cutoff walls remain at 154 South and A418 was actually a German company that specializes in doing this using very specialized equipment, excavating a cutoff wall in a chamber, if you like, that’s filled with a very heavy bentonite mixture in order to support the wall.

But once it’s been excavated, you then [trevi] concrete in it and basically fill this up and make a concrete wall. Very expensive to do. They’ve modified their technique so that instead of having to do that, you use a mulch method to make a cutoff wall where you simply put down a cutter head that grinds away the material you put in the dike, reduces the size of it, while you kind of add cement and bentonite to the fluid that’s being used in that process.

And you end up just sort of crushing all this stuff up in place, adding cement and bentonite to it, and the cutoff wall is kind of made in place instead of having these different phases to it. And of course that can save a lot of money when you’re considering doing two or three kilometers of it.

So I think that would be the major change to the engineering method. When you dust off the old feasibility study that they had and apply this kind of modification to it, and then get that property costed, that will be what gets submitted in October to the investment review board at Rio.

Tanya Jakusconek - Scotiabank

And have they given you a timeframe in terms of approval of something like that?

Robert Gannicott

It’s actually pretty standard with Rio. They go through a technical review process. So there’s sort of like a peer review within the company that eventually goes to this technical review board in October and it gets signed off by the board of directors in the first week of December.

Tanya Jakusconek - Scotiabank

So could that be released to us, then, in January? Would that be a reasonable assumption?

Robert Gannicott

Oh yeah, sure. I would have thought December. And there’s no reason why we shouldn’t make a release that says that the technical review board has approved it and it’s being submitted to the board for final approval. And that we would probably be able to do in October, I would think.

Tanya Jakusconek - Scotiabank

And then I seem to remember that it would have taken about two years to construct? Are we looking at a shorter timeframe with these new modifications? Or is that two years still reasonable?

Robert Gannicott

This will be relatively small expenditures next year, I think, on the order of $20 million to $25 million. And it then steps up to sort of about $130 million, $140 million in each of the next two years. And then we’re done.

Tanya Jakusconek - Scotiabank

So we’re looking at $218 million coming in?

Robert Gannicott

Yeah, $218 million for real production. And it won’t sort of involve a step up of production levels from where they are now. What it really does is prevent production from falling off in the future. It gives you a nice, fat, robust tail on the project to keep revenue up right to the end.

Tanya Jakusconek - Scotiabank

And then just on the reclamation liability again. The $65 million which is your share for Diavik, that’s still backed by the asset, isn’t it?

Robert Gannicott

No. Well, we are required to put up either cash or letters of credit for $65 million, or we will be required, for Diavik, and $260 million for Ekati. Now, we have a conversation going with the government that may allow us to use the Diavik asset with the $65 million bottom applied to it of course, to use that asset as security to support a part of the $260 million that’s required on the Ekati asset.

Tanya Jakusconek - Scotiabank

So it’s just for the part of the Ekati?

Robert Gannicott

Yes, it’s using the value of Diavik as a support to part of the reclamation bond on Ekati, so that we don’t have to put more cash over there.

Tanya Jakusconek - Scotiabank

And do you think we’ll have some clarity on all of this during this year?

Robert Gannicott

Obviously the federal government didn’t want to sign off on this because they’re about to send the files up to Yellowknife, and the people in Yellowknife only received the files the day before yesterday. So they only got the mandate to work with us the day before yesterday. So it will be a couple of months for sure. And there’s no particular reason to rush the process, because they’re not asking us for the cash in the meantime, at the moment.

Operator

And your next question comes from the line of Tyler Broda of Nomura.

Tyler Broda - Nomura

Just in terms of Misery and the satellite material, how big is the northeast satellite pipe and do you see much potential for the variance from the historical material as we move forward into the satellite pipe? And then secondly, in terms of the changing dynamics around the financing in the diamond market in India, can you tell us sort of where we are on that arc at the moment? Do you expect any of the changes that came through on April 1 to have an impact going forward? Just some color on that would be great.

Robert Gannicott

On Misery, I’m afraid I have to go back to the statement that it’s not classified as ore reserve or as resource, so that we’re not able to put forward to you predictions about tonnage and grade. I think the only thing we can tell you about it is what we’ve already mined.

We could give you the historical information that we’ve mined a certain tonnage of it and it delivered this much diamonds and we have sold those diamonds for a certain amount of money. We can do that, and I think we’re able to tell you what amount of tonnage we take out as we go around each lift on the pit in doing the stripping. But we’re not able to make a forward-looking view on it, and I apologize for that, but I’m afraid that’s what the regulations constrain us to do.

Can you give any more color on it than that, Chantal?

Chantal Lavoie

Like I said earlier, we’ve got about 30,000 tons of that material that we’ve stockpiled as we’ve taken the [bench] down. We had a small box sample that we’ve tested, and it came back with slightly under a karat per ton. And I will be processing that 30,000 tons through the course of this quarter. So we’ll be in a position by the end of the quarter to report results out of that pipe. And again, similar to the Misery South and Southwest, then obviously somebody can extrapolate what the karat production will be as we mine more of that material. But again, right now, we don’t have a good understanding of the shape and volume associated with that, and as Bob said, therefore we cannot really report any kind of resource or reserve on it.

Robert Gannicott

You have to understand, we bought this from BHP. They didn’t have a need to define these smaller areas of mineralization and get them up to reserve standard. They were going to lay back this pit and they would take this stuff as a gain and whatever it was would be okay, and there was no need for them to define it further. So we’ve inherited that, and the only way to bring that up to a level that you could call ore reserve would be to just stop the stripping in the pit so that we could put the diamond drills in there and drill the necessary holes and so on. And we don’t want to stop the stripping in the pit, because it’s important to us to get the Misery revenue stream on as early as we can.

Tyler Broda - Nomura

And then the Indian diamond financing market?

James R. W. Pounds

I’d like to say, the banks in India were particularly supportive of the industry last year during probably quite a flat period. So what we’ve seen in the beginning of this year, the improvement in the market is quite a strong return of liquidity to the manufacturing center, which probably puts them in a much more comfortable situation than they were three or four months ago.

And also, you must remember that the diamond and jewelry business in India is probably one of the leading producers of overseas cash coming in for finance coming into the economy in general. So going forward from here, I think probably the Indian banks will be reviewing their positions, and I think the Indian diamond business, with the greater liquidity, is probably in a position to be a little bit more positive going forward.

Operator

And your next question comes from the line of [unintelligible] King of Goldman Sachs.

[unintelligible] King - Goldman Sachs

Just thinking about the Diavik JV deal, what happens if they don’t want to progress and you do?

Robert Gannicott

We cannot force a decision on them. In other words, if they said they didn’t want to do A21, we would not be able to do it alone or force them to do it jointly with us. And I don’t expect that to happen, by the way. I think they’re as enthusiastic about it as we are, if not more. But if A21 were left in the end, if that really is what you’re asking, we would be able to inherit it and of course then incorporated into Ekati.

[unintelligible] King - Goldman Sachs

So theoretically, your license could revert and then you could reapply as a sole proprietor?

Robert Gannicott

Absolutely. It’s more than theoretically. If they decided they’d had enough and it was time to go, the license becomes ours.

Operator

And your next question comes from the line of Des Kilalea from RBC.

Des Kilalea - RBC

Just a question for Wendy on the forex. Presumably the forex adjustment is a netting of asset values in a weaker Canadian dollar converted to dollars against the tax or any other things?

Wendy Kei

No, there’s three impacts on our results when the Canadian dollar weakens. We have a benefit on the operating costs of both mines, we have a foreign exchange loss on the P&L that relates to the revaluation of Canadian denominated cash, and then included in the tax expense line is the revaluation of nonmonetary items such as PP&E netted against any nonmonetary liabilities. So those are the three areas that foreign exchange impacts our results.

Des Kilalea - RBC

So suffice it to say, it’s unpredictable. [laughter]

Operator

And your next question comes from the line of Ned Davis of William Smith & Company.

Ned Davis - William Smith & Company

I was wondering if you could give us an update on two things. First of all, your expectations with regard to your partners at Ekati in that part of the venture, as to whether they will fully participate in the capex that’s expected to develop, particularly Jay? And secondly, with regard to the comment about possibly changing the collateral on the reclamation, what your net expectation is for the amount of cash the company will have to tie up the reclamation on the two lines going forward?

Robert Gannicott

Let’s start off with the partners. Yes, I do expect them to participate. It would be very unwise of them not to participate, because the dilution that applies is very punitive. So they’ll definitely be there for this in one form or another. The main minority interest in Jay is actually owned in a public company, so there is a structure there that allows them to raise money and put money into the project. So I don’t foresee any issue there.

My best expectation for the amount of money that’s going to go over here will be definitely the $65 million for the Diavik bond. And of the $260 million for Ekati, I think we’re going to have at least $150 million that would be in cash, and it’s a reasonable expectation, although no guaranteed outcome, that we may be able to come to this arrangement with the government to secure the balance of the Ekati bond using the security of the Diavik project.

But there will be restrictions on that. In other words, obviously the government’s reason for considering this, which does put them in a position that’s at higher risk, if you like, although it’s a very modest risk, it’s a higher risk than having cash or a letter of credit, the reason for them to do that is because they want to see us be able to push ahead with Jay because they don’t want to see an interim closure or anything like that. So there would definitely be a covenant on an arrangement like that with the government that that’s where the cash has to be used.

Ned Davis - William Smith & Company

When you say the government, there’s been a change, I think, effective right now, where the territorial government is taking over a lot of this administration. Are they the decision makers on this, or is it the federal government?

Robert Gannicott

They are the decision makers, but as of only two days ago. So it’s going to take a while for this to get through their system as well.

Ned Davis - William Smith & Company

I know this is [unintelligible] question, but does that change the prospects for getting maybe a more favorable arrangement, having it be the territory?

Robert Gannicott

No, not really, but I do think that we probably will be able to do this arrangement. The restrictions that are on this are based on an act of Parliament. I mean, the government doesn’t have the discretion to decide whether or not there’s going to be a reclamation bond or whether or not you’ve got to put a valuable security. That is required by act of Parliament, and there’s no discretion to fool around with that.

Operator

And your next question comes from the line of Richard Hatch of RBC.

Richard Hatch - RBC

Could you provide just a rough split of your cash between Canadian and U.S. dollars?

Wendy Kei

We have at least $127 million in Canadian dollars sitting on the balance sheet as security for our Ekati reclamation. So that can give you some insight as to the value of the cash. Plus, we have other operating bank accounts.

Richard Hatch - RBC

So that’s about two third and a third?

Wendy Kei

Correct.

Operator

No further questions. I would like to turn the call over to Bob Gannicott for closing remarks.

Robert Gannicott

Thanks, everybody, for being on the call today. We’ve done our best to answer your questions. We’re happy to take follow up questions, which you can steer through either Richard or Kelly. And I just apologize once again for our somewhat stilted responses with respect to the definition of the mineralization that’s coming out of the layback of the Misery pit. And I hope you can understand that there simply are some laws that come into play there that we have to respect. So thanks again for being on the call and we look forward to talking to you as the quarter goes by.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Dominion Diamond Corporation CEO Discusses F4Q2014 Results - Earnings Call Transcript
This Transcript
All Transcripts