Dominion Diamond announces rosy 2nd-quarter results

Dominion DiamondCorporation says itoutperformedexpectations in the second quarter of this fiscal year.

It's reporting a net income of $26.6 million in the second quarter.

Dominion Diamondowns an 80 per cent share of theEkatimine and a 40 per cent share ofDiavik. It says the two N.W.T. diamond mines are performing exceptionally well.

Edward Sterck, an analyst for the Bank of Montreal in London, said he's projecting the price of Dominion Diamond's stock will rise to more than $20 a share from just over $15today.

"Longer term, provided the permitting process goes well for [Ekati's]Jaypipe, the company could continue to be an operator for many years to come and continue to contribute to the economy of the Northwest Territories as well."

The company said it pulled 30 per cent more carats from Ekatithan expected, and the price of rough diamonds rose about eightper cent.