Stellar Diamonds plc, announcing its unaudited interim results for the six months ended  December 31, 2015,  said  yesterday   that  Deutsche Balaton, a German based investment company, was brought on board in November “as a significant shareholder and funding partner”.  Lord Daresbury, Non-Executive Chairman, said: “Deutsche Balaton invested approximately US$ 2.4m into Stellar through a convertible loan and a direct equity investment.”

For the period under review, Stellar reported that it had cash, diamonds held for sale and other inventories worth US$ 0.7m as on December 31, 2015. The Company has repaid the Yorkville loan in full.

“Administrative costs further reduced to US$ 0.65m from US$ 0.91m in the 6 months to December 2014 (29% reduction) and US$ 1.44m for the 12 months to June 2015 (10% reduction for 6 month equivalent),” the Company stated.

On the operational front, Stellar said that good progress was being made on the mining licence application which was submitted for the Tongo Kimberlite Dyke-1 Project in November 2015. The trial mining process at the Baoulé Kimberlite Pipe Project is also moving apace.

Stellar also provided some highlights of progress in recent months, post the reporting period.

The Company realised approximately US$ 0.3 million from a sale of diamonds from the Baoulé Kimberlite Pipe Project, Guinea in March 2016   taking total revenues to date from diamond sales to approximately US$ 1 million. Stellar reported that gem diamonds of high quality were achieving prices of up to US$ 6,800 per carat. A total of more than 9,300 carats have been recovered from the continuing trial mining at Baoulé. “The largest stone of 55 carats, though of low quality, indicates large stone potential of pipe,” the Company noted, reporting 73% completion (presently) of the targeted 100,000 tonne bulk sampling. 

On the Tongo Kimberlite Dyke-1 Project, Sierra Leone, the Company reported that the Environmental Impact Assessment for it has been approved.  

The Company estimates that the project NPV stands at US$ 53 million with an IRR of 31%.  However, the Company cautioned that “the weakening of the South African Rand and lowering of diesel price has significantly enhanced current project economics”.

Stellar Diamonds Chief Executive Karl Smithson commented, “During the six months reporting period Stellar has continued to achieve good progress at the advanced Tongo and Baoulé projects.”

Daresbury, noted that there is further resource potential at Tongo from three as yet undrilled, high-grade kimberlites next to Dyke-1. “Subject to available finance we will aim to drill Dyke-4 and bring it into resource with a target of 500,000 carats that can contribute to the 1.45 million carat resource at Dyke-1 as we commence production,” he said.

“We are now turning our attention to potential and appropriate sources of funding for the Tongo mine,” Daresbury added. “A total capital requirement (including working capital for the project) is calculated to be around US$ 25 million which will enable both the surface and underground mining operation to be brought on stream. We will provide further details on this in due course.”

Hansjörg Plaggemars hs joined the Board of Stellar as the appointed representative of Deutsche Balaton.

As part of the Company’s efforts to rationalise corporate costs, Dr. Markus Elsasser and Liviu Meran, both representatives of significant shareholders, stepped down from their non-executive director positions. 

In November the Company also  undertook a capital reorganisation through a 1 for 50 consolidation of its ordinary shares.