Renard Output, Sales Fall in 2Q

RAPAPORT... Stornoway Diamond Corporation saw production and sales dropin the second quarter amid a slowdown while the company transitions from open-pitto underground mining. The miner produced 223,351 carats from its Renard mine inthe three months ending June 30, a 46% decline compared with the same periodlast year. The company sold 201,283 carats at two tenders, versus 350,159carats across the same number of tenders in the second quarter last year. Totalsales fell 30% to $21.8 million (CAD 28.6 million). The average price climbed25% to $109 per carat. "Our second-quarter production-and-sales report reflects theongoing transition from open-pit to underground mining," CEO Matt Manson saidFriday. The miner expects output to improve once undergroundproduction is up and running. "Initial diamond results are encouraging, and given thevolume and quality of the waste that is being rejected, we see the potentialfor processing capacity in our plant beyond its current nameplate rating,"Manson added. The company expects higher processing rates, grades and caratrecovery in the second half of the year. In May, Stornoway reduced its production expectations forthe year to between 1.35 million and 1.4 million carats, from its initialforecast of 1.6 million carats.