George Frangeskides, Exec-Chair at Alba Mineral Resources, discusses grades at the Clogau Gold Mine. Watch the full video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksFDI.L Regulatory News (FDI)

  • There is currently no data for FDI

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Quarterly Update on Operations

23 Oct 2017 07:00

RNS Number : 2656U
Firestone Diamonds PLC
23 October 2017
 

23 October 2017

 

Firestone Diamonds plc

("Firestone", the "Group" or the "Company")

 

Quarterly Update on Operations

 

Firestone Diamonds plc (AIM: FDI) provides its quarterly update on operations at its Liqhobong Diamond Mine ("Liqhobong") for the quarter ended 30 September 2017 (Q1 of the Company's 2018 financial year). Liqhobong is owned 75% by Firestone and 25% by the Government of Lesotho.

 

Highlights for the quarter ended 30 September 2017

· Plant operating at nameplate capacity;

· Recovery of a 134 carat gem-quality light yellow diamond: the largest diamond recovered to date which will be included in the Company's next sale;

· A total of 195,330 carats sold in the quarter, including the second >US$1 million stone;

· Mining proceeding to plan and operations gradually extending to mining more representative ore from the pit;

· As at 30 September 2017, cash on hand was US$4.3 million;

· 199,007 carats recovered at a grade of 21.1 carats per hundred tonnes ("cpht") (FY 2017-Q4: 204,000 carats at a grade of 22 cpht); and,

· Zero lost time injury record maintained with almost five million hours worked.

 

 

Stuart Brown, Chief Executive Officer, commented:

 

"Production for the quarter has been very stable, we ended the quarter slightly above all our anticipated production targets. While the previously announced average value per carat was somewhat disappointing this is reflective of the combination of the lower than expected occurrence of better quality diamonds recovered during the quarter, the widely reported current market conditions where sales are weaker in the finer sizes and weaker demand due to the time of the year.

 

"We have started moving to other areas in the pit and as expected, we have seen the start of some improvement in average value per carat recovered. However, as highlighted in previous announcements, mining will progress into all areas of the pit in time and it will be some while before more representative volumes of all the ore types are mined and we can better establish our revised average value per carat for planning purposes. As with many diamond deposits, the average value realised per carat may continue to show significant variability on a sale by sale basis. Pleasingly, the quarter ended on a highlight with the announcement of the recovery of our second plus 100 carat stone at the end of September."

 

 

Operations

 

In the quarter ended 30 September 2017, Liqhobong treated 944,582 tonnes of ore, at an average of 507 tonnes per hour. 199,007 carats were recovered during the quarter. Included in this was the largest diamond recovered to date, a 134 carat light yellow stone, as well as 45 specials (larger than 10.8 carats). This compares to 54 specials in the previous quarter.

 

Mining is proceeding to plan and Firestone is gradually extending operations to additional areas in the pit. Management expects to be able to fully optimise operations as more detailed knowledge of the pit is acquired over the coming months, and as previously announced is working on the details of a revised mine plan which will be published in due course.

 

Health & Safety

 

At the end of the quarter, Liqhobong maintained its outstanding health and safety record, having reached almost five million man hours worked without a single Lost Time Injury since the start of the project.

 

Financial

 

Despite local currency strength against the US$, Firestone reports cost per tonne treated including waste stripping at US$12.2 per tonne treated which is at the lower end of guidance. This cost is expected to rise as waste stripping increases over the remainder of the year.

 

Cash available at the quarter end was US$4.3 million with a further US$10.0 million available under the standby facility. During the quarter Liqhobong made its third ABSA bank repayment of US$ 5.5 million, which included US$0.8 million of interest. Firestone continues to work to finalise the new mine plan based on a revision of the expected average life of mine value per carat which it anticipates will be higher than the average value realised at the two sales reported for this quarter. With this in mind, Firestone continues to have positive discussions with both its major shareholders and its debt provider, ABSA Bank Limited, to reach a financing solution.

 

As previously advised, Firestone will update the market further once those discussions are complete and the revised mine plan is agreed, which is expected to be in Q4 CY2017.

 

Diamond Sales

 

A total of 195,330 carats were sold in the quarter including Liqhobong's second >US$1 million stone, a 45 carat clean white stone. The sales this quarter achieved an average value of US$69 per carat, yielding proceeds of US$13.5 million. Since commencement of production in Q4 CY2016, Firestone has sold all 505,706 carats recovered, for US$41.3 million, at an average value of US$82 per carat.

 

The overall market environment has seen a combination of oversupply and the previously reported Indian de-monetisation programme which is still having an impact on the Run of Mine goods (+11 diamond sieve and smaller). In addition, the summer months are traditionally the quietest time in the rough selling season. In the medium term, the Board expects market conditions to improve.

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").

 

For more information contact:

 

Firestone Diamonds plc

+44 (0)20 8741 7810

Stuart Brown

 

 

 

Macquarie Capital (Europe) Limited (Nomad and Broker)

+44 (0)20 3037 2000

Raj Khatri

 

Nick Stamp

Nicholas Harland

 

 

 

Tavistock (Public and Investor Relations)

+44 (0)20 7920 3150

Simon Hudson

Emily Fenton

 

+44 (0)7788 554 035

Jos Simson

 

Barney Hayward

 

 

Background information on Firestone

Firestone is an international diamond mining company with operations focused in Lesotho. Firestone commenced commercial production in July 2017 at the Liqhobong Diamond Mine in Lesotho.

 

Lesotho is emerging as one of Africa's significant new diamond producers, hosting Gem Diamonds' Letseng Mine, Firestone's Liqhobong Mine and Namakwa Diamonds' Kao Mine.

 

For more information please visit: www.firestonediamonds.com.

 

**ENDS**

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
UPDPGGWAUUPMGMP
Date   Source Headline
25th Mar 20204:41 pmRNSSecond Price Monitoring Extn
25th Mar 20204:36 pmRNSPrice Monitoring Extension
25th Mar 20208:05 amRNSSuspension of Operations to combat Coronavirus
20th Mar 20205:30 pmRNSFirestone Diamonds
13th Mar 202011:38 amRNSResult of Meeting
13th Mar 20209:05 amRNSSecond Price Monitoring Extn
13th Mar 20209:00 amRNSPrice Monitoring Extension
26th Feb 20207:05 amRNSSecond Price Monitoring Extn
26th Feb 20207:05 amRNSPrice Monitoring Extension
26th Feb 20207:04 amRNSSecond Price Monitoring Extn
26th Feb 20207:03 amRNSPrice Monitoring Extension
26th Feb 20207:02 amRNSSecond Price Monitoring Extn
26th Feb 20207:01 amRNSPrice Monitoring Extension
25th Feb 20202:06 pmRNSSecond Price Monitoring Extn
25th Feb 20202:00 pmRNSPrice Monitoring Extension
25th Feb 202011:05 amRNSSecond Price Monitoring Extn
25th Feb 202011:00 amRNSPrice Monitoring Extension
25th Feb 20209:05 amRNSSecond Price Monitoring Extn
25th Feb 20209:00 amRNSPrice Monitoring Extension
25th Feb 20207:01 amRNSQuarterly Update on Operations
25th Feb 20207:00 amRNSProposed cancellation of AIM listing
19th Feb 202011:05 amRNSSecond Price Monitoring Extn
19th Feb 202011:00 amRNSPrice Monitoring Extension
17th Jan 202012:23 pmRNSIssue of Shares
17th Jan 202011:36 amRNSResult of AGM
6th Jan 20209:05 amRNSSecond Price Monitoring Extn
6th Jan 20209:00 amRNSPrice Monitoring Extension
20th Dec 20197:00 amRNSFinal results for the year ended 30 June 2019
4th Dec 20199:42 amRNSGrid Power Restored
19th Nov 20194:35 pmRNSPrice Monitoring Extension
1st Nov 20193:53 pmRNSIssue of Shares
1st Nov 20197:00 amRNSProduction resumes at Liqhobong Mine
23rd Oct 20197:00 amRNSQuarterly Update on Operations
17th Oct 20195:30 pmRNSResults of General Meeting
15th Oct 20192:03 pmRNSUpdate on power disruptions
4th Oct 20192:06 pmRNSSecond Price Monitoring Extn
4th Oct 20192:00 pmRNSPrice Monitoring Extension
4th Oct 201912:06 pmRNSProduction disruption due to power fluctuations
1st Oct 20193:23 pmRNSShareholder Circular and Notice of General Meeting
25th Jul 20197:00 amRNSQ4 Operations Update and Guidance for FY2020
22nd Jul 20197:00 amRNSBoard Changes
8th Jul 20197:00 amRNSRecovery of 54 Carat Fancy Yellow Diamond
1st Jul 201912:16 pmRNSBank and Bondholder Support for Covenant Waiver
30th Apr 20199:01 amRNSBoard Changes
25th Apr 20197:00 amRNSQuarterly Update on Operations
15th Apr 201911:49 amRNSIssue of Shares re: Eurobond
8th Apr 20197:00 amRNSRecovery Of 72 Carat Yellow Diamond
28th Mar 20197:00 amRNSUnaudited results for six months to 31 Dec 2018
12th Feb 20197:00 amRNSRecovery of 70 Carat White Gem Diamond
4th Feb 20197:00 amRNSQuarterly Update on Operations

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.