Announcing its unaudited interim results for the six months ended 31 December 2016 (H1 2017), Firestone Diamonds plc reported a widening of its loss y-o-y. Loss for the period amounted to US$ 8.8 million as against loss of US$ 4.6 million accrued in H1 2016. Loss per share stood at 2.0 cents compared to 1.5 cents in H1 2016.

The Company, however, noted that the Liqhobong Diamond Mine project was completed in time and within the budgeted US$ 185.4 million; and that commissioning had commenced in October 2016. The Company also pointed out that nameplate capacity had been achieved on several occasions and that a total of 402,440 tonnes was treated.

Firestone declared that a 37 carat white diamond was recovered; and 20 other special stones (larger than 10.8 carats) and several fancy yellow diamonds were also recovered.

“This has been a very successful Project from a construction and commissioning perspective,” Stuart Brown, Chief Executive Officer of Firestone, commented. “To have completed the Project within the budget in a very difficult environment and without any lost time injuries, makes us all very proud.”

He added: “We look forward to the continued trend of over achievement that we have demonstrated throughout as we continue with our ramp-up phase. Importantly we are now working towards achieving commercial production in the coming months."

Meanwhile, in the post-H1 2017 period, the Company completed two sales – one in February and the other in March 2017. Both sales were held in Antwerp and all 127,590 carats offered for sale were sold.  Total sale proceeds amounted to US$ 13.7 million; achieving an average price of US$ 107 per carat.

The Company said that total debt facilities of US$ 29.0 million are available to it; and it had a closing cash balance of US$3.3 million.

Commenting on the market scenario Brown noted: “The overall diamond market remains fairly difficult although prices for the larger and better quality diamonds continue to be strong. The impact of the Indian demonetisation event towards the end of the Period has negatively affected the lower quality, high volume, end of the diamond market. The impact of this has meant that prices for these goods have weakened and in some cases the very poor quality goods have remained unsold. It is not certain how long this situation will continue for, but there are some signs that pricing is improving in these categories.”