37ct. Diamond Boosts Stornoway Prices

RAPAPORT... Stornoway Diamond Corporation saw rough prices rise in thefirst quarter, driven by a resurgent market and the sale of its most expensive stoneto date. The miner achieved an average price of $112 per carat forthe three months ending March 31, selling 399,135 carats for a total of $44.8million (CAD 56.4 million). A 37-carat, type IIa, D-color, internally flawlessrough stone garnered $1.3 million, or $36,000 per carat - the highest price fora diamond from its Renard mine in Quebec. "The first quarter saw a strong performance for Stornoway insales and pricing, with successively higher prices at each of our three sales,reflecting an improved size and quality mix and a strong start to the year forthe diamond market," CEO Matt Manson said. "The quarter also saw the sale ofour highest-value stone to date." Although this year's average price has increased from the$85 per carat earned in 2017, Stornoway has yet to reach its target of$125 to $165 per carat for 2018. Stornoway's production of 285,851 carats for the quarter waslower than it predicted, as the company processed lower-grade ore while goingthrough its transition from open-pit to underground mining. It expects that shiftto be complete by the end of the second quarter. In 2017, the Canada-based company recorded a loss of $88.8million (CAD 114.6 million), after being forced to devalue Renard, andconsequently incurring an impairment charge of $132.6 million (CAD 171million). The drop in the asset's value was due to production of alower-than-expected quality of stones. At the end of the first quarter, Stornoway found a189-carat stone - itslargest to date - fromRenard. Although the stone is relatively low in quality, it is one of thelargest diamonds ever recovered in Canada.