(IDEX Online) - Stornoway Diamond Corp reported net loss of $114.6 million from net income of $19.6 million in 2016 in its financial year ended December 31, 2017.
Its results reflected "a lower diamond price environment than was originally forecast by the Corporation".
Net income before impairment was $11.1 million for the fourth quarter and $15.0 million for the year.
Diamond sales of 486,633 carats were completed in the fourth quarter with gross proceeds of $52.6 million at an average price of $86 per carat ($108 per carat).
For the full year, Stornoway sold 1,701,561 carats for gross proceeds of $186.2 million at an average price of $85 per carat ($109 per carat).
Matt Manson, President and CEO, commented: "In 2017, Stornoway's Renard diamond mine produced a strong performance in mining, carat production, processing ramp-up, and cost. It has delivered strong operating margins, with EBITDA of $85 million, despite the lower diamond pricing environment that has characterized our first year of sales. As 2017 ended, Renard had established itself as the lowest cost diamond mine in Canada, and Renard diamonds had developed a strong position in the rough diamond market.
"The first half of 2018 will see ore production transition from our starter open pit to our underground mine. Ensuring an efficient ramp-up of the underground operations is a key priority for the Renard team. At the same time, we are introducing our new ore-waste sorting circuit designed to improve the quality of our diamond production and provide future processing expansion capacity. Both of these capital projects, once completed, will define the character of the project for the next decade." Manson continued, "Since the completion of our project fund-raising in 2014, and through four years of mine construction and operations, Stornoway has maintained a strong balance sheet and liquidity position. This will remain a priority for us in our financial management as we pass through the scheduled capital spending of 2018 and pursue the production and revenue growth potential of our business."