Burgundy diamond mines reduces debt

The Ekati significantly reducing debt position 

Burgundy Diamond Mines announces that it has successfully paid out its Convertible Notes totaling US$23.6 million, 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.”

Michael O’Keeffe, Non-executive Chairman, added, “Despite being a countercyclical acquisition, the tier-1 nature of the mine and infrastructure has generated approximately A$196 million 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.” 

The Convertible Notes, issued on September 16, 2021, at a 6% coupon rate, were fully paid out using the Company’s existing cash reserves as of September 20, 2024. With this pay out, Burgundy’s outstanding debt is now reduced to approximately US$74 million, due on June 30, 2026 (excluding capital leases of US$22 million).