Sales are expected to be between $875 and $975 million, an increase of 62% compared to fiscal 2017 sales.
Adjusted EBITDA is forecast to be between $475 and $560 million, reflecting a high margin ore mix, combined with ongoing cost containment and efficiency initiatives.
The cash cost of production is expected to be between $70 and $80 per tonne processed and between $35 and $40 per carat produced. The average price per carat sold is expected to range from $70 to $90 per carat.
Growth capital expenditures are expected to total between $115 and $140 million, demonstrating a commitment to investment in growth. Sustaining capital expenditures, including capitalized production stripping, are expected to total between $160 and $190 million.
Combined production at the Ekati mine (100% basis, fiscal 2018) and the Diavik mine (40% share, calendar 2017) is expected to be between 9.1 and 10.0 million carats.
"We continue to execute on our long-term strategic plan and to deliver results. Our strong sales and Adjusted EBITDA forecasts for fiscal 2018 are driven by high value production from Koala and Misery Main, as Ekati moves to the first full year of the new phase of the mine plan," said Jim Gowans, Chairman of the Board of Directors.
According to the company, the diamond market continues to recover from the impact of demonetization in India. The guidance for fiscal 2018 foresees the sale of a higher volume of lower value diamonds that were previously held back from sale due to the weaker market conditions following the demonetization. This is expected to affect the average price per carat sold as well as the number of carats sold, Dominion notes.
Alex Shishlo, Editor of the Rough&PolishedEuropean Bureau in Brussels