Rough recoveries up by 34% at Firestone
Firestone Diamonds provides its quarterly update on operations at its Liqhobong Diamond Mine for the quarter ended 30 June 2019 (Q4 of the Company's 2019 FY), it's performance compared to market guidance for FY 2019, and guidance for FY 2020.
According to their highlights for 4Q ended 30 June 2019 says, Diamond recoveries of 208 572 carats, 34% higher than Q3 of 155 206 carats. Notable recoveries of a 72 carat yellow makeable diamond, a 22 carat makeable white diamond and an 11 carat fancy light-pink diamond.
A total of 177 521 carats sold, lower than Q3 of 211 368 carats due to timing of sales, realising revenue of US$12.7 million (Q3: US$16.8 million) at an average value of US$71 per carat (Q3: US$80 per carat) and an average value for FY 2019 of US$73 per carat.
Looking at FY 2019 results compared to guidance, the company achieved its market guidance for the financial year to end-June 2019. Diamond recoveries of 829 458 carats (FY 2018: 835 832 carats) are within guidance of between 820 000 and 870 000 carats.
Looking ahead at FY 2020 guidance, Diamond recoveries of between 820 000 and 870 000 carats are targeted. Operating cost to remain between of US$13.501 and US$14.501 per tonne treated is being based on an average Rand-US Dollar exchange rate of R14:50.
Paul Bosma, Chief Executive Officer, commented: “The fourth quarter performance was solid from an operational perspective, helping us achieve our guidance range for all items for FY 2019. From a market and pricing perspective, it was a tough financial year; particularly for the smaller, lower value goods and these conditions are expected to persist for the rest of 2019 and possibly improving during 2020 when global rough supply is expected to reduce.
As reported previously, the Company has actively engaged with its debt holders to ensure it can sustain operations through the current downturn and to be well positioned to benefit when the global supply-demand dynamics improve.”
