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Firestone Diamonds upbeat after solid first half
Diamond mining company Firestone Diamonds issued its unaudited interim results for the six months ended 31 December on Tuesday, reporting revenue of $26m.
The AIM-traded firm said it had cash of $8.8m generated from operations, and claimed a loss for the Period of $7.8m, narrowing from $8.8m in the first half of the prior year.
That made for a loss per share of 2.2 cents - slightly wider than the 2.0 cents reported a year ago.
It completed a successful $25m equity raise in December, in conjunction with ABSA debt restructuring.
Cash balances as at 31 December stood at $29.7m.
On the operational front, the board said it had a zero lost-time injury record at the Liqhobong mine, with over 5.3 million man hours worked.
The project commenced commercial production from 1 July, with the approval of a revised mining plan based on maximising its cash flow in the near term.
A total of 1.9 million tonnes was treated in the six months to 31 December, ahead of the 3.6 million tonne per annum target.
379,716 carats were recovered, including the recovery of the largest diamond to date - a 134 carat gem-quality light yellow diamond.
Average value per carat of $74 was achieved in the first half, with the board reporting a cash operating cost per tonne treated, including waste, of $11.97.
A total of 1.5 million waste tonnes were stripped, slightly ahead of the 2.8 million tonnes required by the revised mine plan in 2018.
Since the period ended, the group held its first sale of 2018 in February when all 114,887 carats on offer were sold at an average value of $82 per carat, realising total sale proceeds of $9.4m.
It also received ECIC approval in relation to the ABSA debt restructuring, subject to final documentation and signature.
"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," said chief executive Stuart Brown.
"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."
Brown said the company entered the second half of the financial year on a strong financial footing, having raised $25m at the end of the period, while also proposing revised terms on its credit facility, as it embarked 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 $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."