Firestone recovers 3.79 lacs carats in H1
Firestone Diamonds plc, diamond mining company, announces its unaudited interim results for the six months ended -H1 2018. According to the result statement, Liqhobong commenced commercial production from 1 July 2017.
About 1.9 million tonnes treated in the six months to 31 December, ahead of the 3.6 million tonne per annum target & 379,716 carats recovered, including the recovery of the largest diamond to date, a 134 carat gem-quality light yellow diamond. Average value per carat of US$74 achieved in the first half.
Stuart Brown, Chief Executive Officer of Firestone, commented: "In our first six months of full scale production at Liqhobong, processing rates were above expectations, while costs continued to remain below our targeted levels. To address the lower than expected diamond values, we announced a revised mine plan at the end of the period, which is designed to maximise cash flow in the shorter term while we address diamond value recoveries.
"The Company entered the second half of the financial year on a strong financial footing, having raised US$25.0 million at the end of the period, while also proposing revised terms on its credit facility, as it embarks on its revised mining plan.
"With the strong retail season and the conservative sales volumes from all the major producers towards the end of 2017, we have seen a very encouraging start to 2018 for the rough market, with our first sale of the calendar year realising an average value of US$82 per carat.
"We look forward to updating shareholders in the next quarter on our diamond recovery initiatives and the improving market conditions for the diamond sector."
A total of 352,272 carats were sold during the four sales held in the period for total proceeds of US$26.0 million , and included Liqhobong's second > US$1 million stone. The first two sales achieved an average value of US$69 per carat due to the lower than expected occurrence of better quality diamonds recovered, and a generally weaker market.
In the second quarter an improvement in market conditions, when very competitive bidding was seen on the lower category run of mine diamonds and particularly strong demand was experienced for the fancy yellow diamonds offered, resulted in a higher average diamond value achieved for the final two sales of US$80 per carat, increasing the average value realised for the period to US$74 per carat.
