Firestone Diamonds Slashes Annual Loss

RAPAPORT... Firestone Diamonds narrowed its annual loss by 91% amidhigher sales, and due to the absence of an impairment charge it incurred a yearago. The miner recorded a net loss of $14.2 million for the fiscalyear that ended June 30, it said last week. That's compared with a loss of$151.7 million last year after a permanent reduction in the value of itsLiqhobong mine in Lesotho forced it to write off $122.6 million. Rough-diamond output at Liqhobong more than doubled to835,832 carats from 365,891 carats a year earlier as the miner reached commercialproduction at the asset in June 2017, just before the start of the fiscal year.As a result, revenue grew to $62.2 million from $27.8 million, while salesvolume increased to 831,637 carats, versus 310,376 carats a year before.However, the average price slipped 17% to $75 per carat. While Firestone saw lower-grade production in the first halfof the year, that figure increased in the second half after a move to the higher-grade southern part of the pit. "The 2018 financial year was an eventful one, marking thefirst full year as a diamond producer at Liqhobong," Firestone CEO Paul Bosmasaid. "Having concluded a $25 million fundraising at the end of December 2017and restructuring our ABSA debt facility, we entered the second half of thefinancial year on a much stronger financial footing. We had an exceptionalfinal quarter from an operational perspective." Firestone owns 75% of Liqhobong, with the remaining 25% heldby the Lesotho government. Image: Liqhobong mine. (Firestone Diamonds)