Stornoway Loss Deepens Amid Weak Market

RAPAPORT... Stornoway Diamond Corporation fell deeper into the red inthe first quarter, as rough prices softened, it saidMonday. The miner recorded a net loss of CAD 48.4 million ($36million) for the three months ending March 31, in comparison to a loss of CAD11 million ($8.2 million) during the same period last year. "A continued downward pressure on the market price for roughdiamonds has inhibited the [company's] ability to generate positive free cashflow in 2019," Stornoway said. The Canada-based miner plans to suspend open-pit operationsat its Renard mine in order to save CAD 18 million to CAD 20 million ($13.4million to $14.9 million) during the course of the year. It will continue tomine from two underground ore bodies at Renard. Revenue dropped 4.7% year on year to CAD 53.3 million ($39.6million) for January to March. The company sold 429,506 carats attwo tenders during the period, a 37% increase over the same period a year ago. The average priceslid 26% to $83 per carat. A higher ore grade at Renard lifted production by 56%year on year to 444,562 carats, Stornoway noted. However,output dropped 8% compared with the previous quarter as the miner sufferedmechanical issues with its equipment due to the extreme cold in January andFebruary. Image: The Renard underground mine. (Stornoway Diamond Corporation)