Firestone Diamonds plc in its quarterly update on operations at its Liqhobong Diamond Mine for the quarter ended 30 June 2019 (Q4 of the Company's 2019 financial year), said that diamond recoveries of 208,572 carats in the period were 34% higher than 155,206 carats recovered in the previous quarter (Q3 FY 2019). 

The Company treated 904,902 tonnes of ore as compared to 862,838 tonnes treated in Q3; and achieved a grade of 23.0 carats per hundred tonnes (cpht), higher than the 18.0 cpht in Q3; and 22.6 cpht overall for FY 2019.

Firestone reported an operating cost of US$ 12.57 per tonne treated compared to US$ 11.55 per tonne treated in the previous quarter.

During the quarter, 82 stones of plus 10.8 carats were recovered (Q3: 64 stones). “However, the overall average value of the +10.8 carat stones recovered during Q4 was lower than Q3 due to fewer better quality stones,” Firestone noted.  

In the period under consideration, the Company also made some notable recoveries including a 72 carat yellow makeable diamond; a 22 carat makeable white diamond; and an 11 carat fancy light-pink diamond.

Firestone sold a total of 177,521 carats, which marked a decrease from its sales in Q3 of 211,368 carats. The Company earned  US$12.7 million in H1 2019 as compared to US$16.8 million in Q3;  at an average value of US$71 per carat (Q3: US$80 per carat) and an average value for FY 2019 of US$73 per carat.

The Company’s cash balance as at  June 30, 2019 stood at  US$26.3 million as compared US$29.9 million in Q3.  This, the Company clarified, was “after the first capital repayment to ABSA of US$1.9 million, following an 18 month capital grace period which came to an end on 30 June 2019, which reduced the outstanding loan balance to US$65.9 million (Q3: US$67.8 million); and a waiver received from ABSA Bank Limited (ABSA) for certain of its covenants measured as at 30 June 2019 in terms of the US$82.4 million 

Firestone reported one Lost time injury; Q3 being lost time injury free.

The Company has posted a guidance for FY 2020 as:

• Diamond recoveries of between 820 000 and 870 000 carats;
• Ore tonnes treated of between 3.6 and 3.8 mt;
• Operating cost of between US$13.501 and US$14.501 per tonne treated.

Firestone also announced the recovery of a 54-carat intense fancy yellow, sawable diamond port period, in July. The diamond will go on sale at the next tender which is scheduled to take place during September 2019.

Paul Bosma, Chief Executive Officer, commented: "The fourth quarter performance was solid from an operational perspective, helping us achieve our guidance range for all items for FY 2019. From a market and pricing perspective, it was a tough financial year, particularly for the smaller, lower value goods and these conditions are expected to persist for the rest of 2019 and possibly improving during 2020 when global rough supply is expected to reduce.”