Burgundy Diamond Mines reported a mixed Q4 2025 with operational challenges at Ekati and a significant C$115 million loan secured, while trading remains suspended pending regulatory remediation.
- Slight declines in mining and processing volumes at Ekati
- Improved diamond recovery rate per tonne processed
- C$115 million loan secured from Canada Enterprise Emergency Funding Corporation
- Trading suspension ongoing due to ASX Listing Rule 10.1 breaches
- Preparations underway for Sable open pit mining and Fox wash plant project
Operational Performance at Ekati
Burgundy Diamond Mines Limited (ASX – BDM) has released its quarterly activities report for the December 2025 quarter, revealing a nuanced operational picture at its flagship Ekati mine. While waste and ore tonnes mined, as well as tonnes processed, showed modest declines compared to the previous quarter, the company achieved a 4.1% increase in carats recovered per tonne processed. This suggests improved efficiency in diamond extraction despite broader operational challenges.
Operations at the Misery Underground site continued but were hampered by financial constraints and a weakening global diamond market, which impacted the value and demand for diamonds produced during the quarter.
Financial Restructuring and Loan Facility
In a critical development, Burgundy secured a C$115 million loan from the Canada Enterprise Emergency Funding Corporation (CEEFC) under its Large Enterprise Tariff Loan program. This infusion of capital is part of a broader financial and balance sheet restructuring aimed at stabilising the company’s position amid ongoing market pressures. Details of this restructuring were previously disclosed in December 2025.
Despite this financial support, the company’s consolidated net debt, including diamond inventories, stood at US$64.9 million as of 31 December 2025, reflecting the challenging financial environment Burgundy is navigating.
Project Developments and Strategic Initiatives
Burgundy has commenced preparatory work to re-enter the Sable open pit to extract remaining ore, alongside advancing the Fox wash plant project. The latter aims to process a historic low-grade stockpile of approximately six million tonnes of Fox ore, expected to yield diamonds with significantly higher value per carat. These initiatives are designed to complement the Misery diamond assortment and potentially improve overall product quality and revenue.
Meanwhile, technical work continues on the Fox Underground feasibility study, following its pre-feasibility completion in 2025. Regulatory and permitting processes are also underway, signalling Burgundy’s commitment to advancing its pipeline of projects despite current operational and financial headwinds.
Regulatory Challenges and Trading Suspension
Trading in Burgundy’s shares remains suspended following breaches of ASX Listing Rule 10.1 related to short-term financing arrangements with the Choron Group. The company is actively working to remedy these breaches through shareholder approval at an upcoming extraordinary general meeting. The ASX has stipulated that securities will remain suspended until the breach is resolved and Burgundy can demonstrate adequate financial health for reinstatement.
This regulatory hurdle adds a layer of uncertainty for investors, as the timing and outcome of the remediation process will be pivotal for Burgundy’s market re-entry and future capital raising capabilities.
Outlook and Market Position
While no substantive activity occurred at the Naujaat joint venture project during the quarter, Burgundy’s strategic focus remains on optimising its Ekati assets and navigating the complex financial and regulatory landscape. The company’s unique mine-to-market model, which ensures traceability and ethical sourcing, continues to underpin its value proposition in a competitive global diamond market.
Investors will be watching closely how Burgundy balances operational improvements, project development, and regulatory compliance in the coming months.
Bottom Line?
Burgundy’s next steps hinge on regulatory remediation and project execution to restore market confidence.
Questions in the middle?
- Will shareholder approval successfully resolve the ASX Listing Rule 10.1 breach and lift the trading suspension?
- How will the Sable open pit and Fox wash plant projects impact production volumes and diamond quality in 2026?
- What are the risks to Burgundy’s financial position if diamond market conditions continue to weaken?