Stornoway Diamond Corporation announcing its results for the truncated quarter and fiscal year ended December 31, 2015 reported that “Progress at the Renard Diamond Project continues well within the planned schedule and budget”.

Stornoway was reporting for a “truncated quarter” as it recently changed its fiscal year end from April 30 to December 31, “to better align the Corporation’s financial, operational and regulatory reporting ahead of first production at the Renard Diamond Project”. 

By the end of the quarter, 71% of budget was expended and incurred costs and commitments totalled CAD 548.5 million. The Company had managed to complete 63.3% of the construction work as against 59.6%   planned initially; including the completion of a substantial portion of detailed engineering.

“Mining in the Renard 2-3 and Renard 65 open pits stood at 5,975,813 tonnes, or 104% of plan, and underground mining development stood at 887 meters, or 72% of plan,” Stornoway reported.

The Corporation reported a net loss of CAD 4.3 million or CAD 0.01 per share basic and fully diluted, for the two month period ended December 31, 2015; and a net loss of CAD 3.7 million or CAD Nil per share basic and fully diluted, for the eight-month period ended December 31, 2015.

Cash, cash equivalents and short-term investments stood at CAD 209.1 million  the Corporation stated; and excess financing capacity available to complete the project, comprising surplus cash and available cost-overrun facilities, is now estimated at  CAD 117 million after all conditions are satisfied,  and  at “a CAD$:US$ conversion rate of $1.35”.  

The first ore delivery to the Renard diamond process is now expected by the end of September 2016 and commercial production (60% of plant capacity achieved over 30 days) is expected by December 31, 2016.  “This represents a five month improvement on the previous schedule, which assumed commercial production in the second calendar quarter of 2017,” the Corporation noted. The new schedule also envisages a reduction in the forecast cost to complete, from $811 million to $775 million. 

Matt Manson, President and CEO, commented:  “Construction progress at Renard continued to track ahead of schedule during the last two months of our truncated FY2015, which gave us the confidence to re-baseline our schedule and cost to complete forecasts for future progress reporting.  At the end of February construction progress stood at 74.1% compared to the new plan of 72.4%, as our construction team continued to out-perform expectations.”

Pic Cap: Main construction site of the Renard Diamond Project