Firestone records solid first quarter performance in subdued market

By Tasneem Bulbulia      / October 23, 2019 / www.miningweekly.com / Article Link

Aim-listed Firestone Diamonds recorded a solid operational performance at its Liqhobong diamond mine, in Lesotho, in the quarter ended September 30 – the first quarter of its 2020 financial year.

However from a market perspective, pricing remained subdued, CEO Paul Bosma said on Wednesday.

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He indicated that the company continued to engage with its debtholders to ensure it was able to sustain operations through the current downturn.

Diamond recoveries for the period were 201 091 ct, compared with 208 572 in the previous quarter.

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The company recorded grades of 21 carats per hundred tonnes (cpht), compared with 23 cpht in the previous quarter.

A single sale took place during the quarter when 168 612 ct were sold, realising revenue of $10.6-million at an average value of $63/ct.

Firestone’s cash balance ended the quarter at $21.8-million, after interest and capital repayment to Absa of $2.9-million.

POWER INTERRUPTION

As previously announced, power supply to the mine was interrupted on October 1, since which time, the mine's treatment plant has temporarily suspended operations until power is restored.

The company anticipates that production at the mine will restart in early November, once the rented diesel generators are on site and connected to the mine's electrical infrastructure.

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