(Alliance News) - Firestone Diamonds PLC reported a "disappointing year" on Friday, as revenue declined due to a difficult diamond market and a reduction in carats sold.
Firestone shares were down 9.7% in London at 0.70 pence each on Friday.
The diamond producer, which has operations in Lesotho, said for the year ended June 30 revenue was USD57.2 million, down 8.0% from USD62.2 million in a comparable period a year ago.
Firestone said it has experienced depressed diamond prices throughout the year, particularly at the smaller end of the market, which is of particular relevance to the company.
As a result Firestone has received lower prices for diamonds sold during the year, which has resulted in a drop in revenue from expected levels.
The company reported a pretax loss of USD50.5 million, compared to loss of USD17.5 million a year ago, due to an impairment amid the weak prices. Firestone said the market has remained subdued and it has experienced lower than expected average values for September and October sales.
The miner also said production was hampered due to an electricity supply issue which occurred in Liqhobong mine in Lesotho at the beginning of October.
Paul Bosma, chief executive, said: "The year's performance was solid from an operational perspective, as we delivered results within our guidance range for all items within our control.
"From a diamond pricing perspective, it was a tough year, particularly for the smaller, lower value goods and these conditions are expected to persist for the foreseeable future until the end of 2020 when global rough supply is expected to reduce," Bosma said.
By Loreta Juodagalvyte; loretajuodagalvyte@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
