Firestone recovers 835 000 ct in first full year of production

Aim-listed Firestone Diamonds has narrowed its loss a share to about $0.03 for the financial year ended June 30, compared with the loss a share of $0.37 in the prior comparable period.

In the first full year of production at its Liqhobong mine, in Lesotho, the company’s loss decreased by 91% to $14.2-million, while its revenue increased by 125% to $62-million.

Firestone recovered 835 832 ct of diamonds in the year under review, compared with the 365 891 ct recovered during the prior year. Grade increased to 22 carats per hundred tonnes (cpht), compared with 18.6 cpht in the prior comparable period.

Firestone managed to decrease its operating costs to $11.62/t treated, compared with $12.26/t treated in the prior comparable period.

The company’s largest diamond recovered to date was a 134 ct gem-quality light yellow diamond and the most valuable diamond recovered, as measured by dollar per carat, was a fancy pink diamond, which realised $112 781/ct.

CEO Paul Bosma said in a statement on Friday that the 2018 financial year had been an eventful one, marking the company’s first full year as a diamond producer at Liqhobong.

“Having concluded a $25-million fundraising at the end of December 2017 and restructured our Absa debt facility, we entered the second half of the financial year on a much stronger financial footing. 

“We had an exceptional final quarter from an operational perspective and this trend has continued into the 2019 financial year. We continue to evaluate our life-of-mine plan to assess the viability of an extension,” he added.

From a market perspective, Firestone had seen further evidence of subdued pricing for smaller, lower-quality goods at the most recent diamond sales, putting pressure on overall dollar per carat.

However, the demand for larger, better-quality stones remained strong.

The overall supply-demand dynamics in the natural diamond market remained favourable in the short to medium term with no new sources of supply on the horizon, and the major producers carrying minimal stock and operating close to full capacity.

This bodes well for Liqhobong, which is only just starting its journey, the company stated.