Vaaldiam Mining Inc. net loss more than tripled in the first quarter to $7.6 million, reflecting a suspension of operations at the Duas Barras diamond mine in Brazil. The Toronto-based miner lost 11 cents per share for the period ended March 31. That compares to a loss of four cents a year earlier when the net loss was nearly $2.15 million.
Vaaldiam suspended operations in April at its Duas Barras mine in Brazil until higher diamond prices improve the mine’s economics and make it reliably profitable. As a result, it recorded a $6.1 million impairment loss for the quarter, representing the full carrying value of the mine and plant and equipment. It recovered 4,355 carats of diamonds and 221 troy ounces of gold during the quarter.
Until diamond market conditions improve, Vaaldiam said it will focus its attention on the Brauna project.
Vaaldiam increased its interest in Brazil’s Brauna diamond project to 51 per cent by agreeing in March to pay US$6.5 million over 15 months and financing the project development cost to production.
