Stornoway sold 1,701,561 cts!
Stornoway Diamond reported financial and operating results for the fourth quarter and year ended earnings, operating expenses and capital expenses quoted reflect the recent adoption of a change in accounting policy regarding the capitalization of certain underground mine development costs.
According to the recently announced Year Ended December 31, 2017 Stornoway reported net loss of $114.6 million($0.14 per share on a basic and fully diluted basis), compared to net income of $19.6 million in 2016 ($0.03 per share basic and fully diluted).
Included in 2017 earnings is a non-cash impairment charge of $171.0 million, reflecting a lower diamond price environment than was originally forecast by the Corporation. Net income before impairment was $11.1 million for the fourth quarter and $15.0 million for the year.
A total of 398,267 carats were recovered in the fourth quarter from the processing of 518,817 tonnes of ore at a grade of 77 carats per hundred tonnes. For the full year, a total of 1,642,934 carats were recovered from 1,956,436 tonnes of ore at 84 cpht (98%, 97% and 99% of plan respectively).
Diamond sales of 486,633 carats were completed in the fourth quarter with gross proceeds 1,3 of $52.6 million at an average price of US$86 per carat. For the full year, Stornoway sold 1,701,561 carats for gross proceeds of $186.2 million at an average price of US$85 per carat.
Matt Manson, President and CEO, commented: “In 2017, Stornoway’s Renard Diamond Mine produced a strong performance in mining, carat production, processing ramp-up, and cost. It has delivered strong operating margins, with EBITDA of $85 million, despite the lower diamond pricing environment that has characterised our first year of sales.
As 2017 ended, Renard had established itself as the lowest cost diamond mine in Canada, and Renard diamonds had developed a strong position in the rough diamond market. The first half of 2018 will see ore production transition from our starter open pit to our underground mine. Ensuring an efficient ramp-up of the underground operations is a key priority for the Renard team.
At the same time, we are introducing our new ore-waste sorting circuit designed to improve the quality of our diamond production and provide future processing expansion capacity. Both of these capital projects, once completed, will define the character of the project for the next decade.”
Mr. Manson continued, “Since the completion of our project fund-raising in 2014, and through four years of mine construction and operations, Stornoway has maintained a strong balance sheet and liquidity position. This will remain a priority for us in our financial management as we pass through the scheduled capital spending of 2018 and pursue the production and revenue growth potential of our business.”
