Firestone sees high recoveries in first quarter

JOHANNESBURG (miningweekly.com) – Aim-listed Firestone Diamonds recovered 192 604 ct of diamonds from its Liqhobong mine, in Lesotho, in the three months to March 31.

Recoveries were 6.6% higher than the previous quarter, resulting in a year-to-date total of 572 320 ct. 

"In the first nine months of the financial year, Liqhobong has recovered fewer carats than planned owing to the adverse weather and higher water levels in the main pit, particularly in February and March, which restricted access to the higher-grade ore blocks,” CEO Stuart Brown said in a statement on Thursday.

Nevertheless, the company still expects to achieve its yearly production target at the lower end of guidance of 800 000 ct to 850 000 ct, as mining progresses in the higher-grade ore.

During the quarter, Liqhobong treated 869 126 t of ore at an average throughput rate of 509 t/h, while 93 specials were recovered, although the average quality still remained somewhat below expectation. 

Firestone sold 217 380 ct, at an average of $81/ct, in the quarter, yielding proceeds of $17.6-million.

The rough diamond market continued to strengthen during the first quarter of this year, said Firestone, adding that there was competitive bidding and a continued price recovery on the lower-category run-of-mine goods.  

“Supply of lower-value goods across the market is still plentiful but better quality goods are in demand, as are fancy colours, evidenced by the strong demand for the special fancy pink and yellow [diamonds] that were offered by Liqhobong,” the company noted.

Firestone is pursuing a revised mine plan, with the objective of delivering the best returns in the medium term at low risk, while, at the same time, offering the optionality of taking advantage of the longer life-of-mine potential of the Liqhobong orebody should realised diamond values increase or should there be a sustained improvement in market conditions.

“We are making good progress on delivering this plan and, in the first three months of the revised plan, we have realised slightly better values of $81/ct, owing to a combination of better rough market conditions and the recovery of a few exceptionally valuable small fancy coloured [diamonds],” Brown said.