23 September 2024
September 23, 2024: Calgary, Alberta – Burgundy Diamond Mines Limited (ASX:BDM) (Burgundy or the Company) is pleased to report the Company has paid out its Convertible Notes totalling US$23.6M, significantly reducing its debt position.
Kim Truter, Burgundy CEO and MD, commented, “We had several options for our Convertible Notes, and we believe this was the best way forward for the Company. We are pleased to take this major step in further strengthening our balance sheet. The fact we have opted to pay this out in cash highlights the strength and belief in our business and our optimism in the diamond market. Last month we announced our renegotiated surety deal which freed up ~US$114M in cash for 2024, and today we have significantly reduced our debt by successfully closing on our Convertible Notes. We have now secured our position as the number one producer in our peer group, not only on a carat production basis, but also on a debt to earnings multiple.
In addition, two weeks ago we announced the likely extension of our highly cash accretive Misery operation, which is very positive for us as it allows Ekati to run longer with no major capital expenditure requirements over the next couple of years. In late Q1-2025 we will be announcing our extended mine plan, which will mark another important milestone for the Company and will aim to solidify Ekati’s long term future. We are well on our way, and very happy with Burgundy’s progress.”
Michael O’Keeffe, Non-executive Chairman said, “Despite being a countercyclical acquisition, the tier-1 nature of the mine and infrastructure has generated ~A$196M in EBITDA during the first 12 months of operations. This is providing flexibility to both de-lever the balance sheet and develop the resource base to extend mine life. The Ekati asset continues to outperform expectations, offering significant earnings leverage potential for shareholders as diamond prices turn higher.”