Firestone Sees Strong Big-Stone Demand

RAPAPORT... Sales were strong at Firestone Diamonds in the fourth fiscalquarter amid robust demand for larger rough stones, the miner reported Monday. Proceeds from rough sales totaled $18.6 million during theperiod ending June 30, versus $17.6 million in the previous three months,Firestone said. The company did not provide a year-on-year comparison as itsLiqhobong mine in Lesotho only reached its intended production level last July. "At the company's recent sale,demand and pricing remained positive for good-quality 1-carat diamonds and up,"Firestone said. "However, run-of-mine categories were under some pressure inthis competitive market segment." The miner recovered more ofthose ordinary goods during the fourth fiscal quarter, and fewer specialstones, it noted. As a result, the average price dropped to $71 per carat from$81 per carat in the previous quarter. Rough producers are managingindustry-wide inventory well by restricting supply of goods, the miner added.The company expects a quieter period until the end of August due to the summer vacation,and is optimistic for sales during the rest of the year, it said. Firestone's production rose 37% quarter on quarter to263,512 carats, helped by higher grades and processing rates, as well as fairweather conditions during Lesotho's early winter months. The company unearthed835,832 carats of rough for the fiscal year ending June 30, achieving itsforecast of 800,000 to 850,000 carats. During the quarter, Firestone concluded the restructuring ofits $82.4 million debt facility with South African bank ABSA. The company ispursuing a new mine plan after achieving disappointing rough-diamond sellingprices last year.