Stornoway Diamond Corporation announces FY2017 third quarter results

2 November 2017

Stornoway Diamond Corporation announced results for the quarter ended September 30. Highlights include:

  • Net loss of $3.1 million or $nil per share on a basic and fully diluted basis.
  • 442,154 carats recovered during the quarter from the processing of 506,381 tonnes of ore compared to a plan of 422,475 carats from 540,000 tonnes (at 87 carats per hundred tonnes, compared to a plan of 78 cpht).
  • Mining in the Renard 2-3 and Renard 65 open pits comprised 1,074,148 tonnes, or 101% of plan, with 523,257 tonnes of ore extracted. Underground mine development at the end of September comprised 1,206 meters, or 102% of plan.
  • Diamond sales of 405,643 carats were completed with gross proceeds1 of $48.1 million in the quarter. An additional 32,989 carats were sold during the third quarter for which revenue will be realized in the fourth quarter as proceeds from the sale were not received prior to September 30, 2017. Adjusted EBITDA was $15.0 million, or 30.0% of revenues.
  • Average diamond pricing achieved at sale of US$95 per carat ($119 per carat2-3), compared to US$87 per carat in the second quarter and US$81 in the first quarter.
  • Cash operating costs per tonne processed2 of $57.97 per tonne ($66.39 per carat) and capital expenditures2 of $22.7 million in the quarter, both within plan.
  • During the quarter, a program of plant modification measures centred on a new ore-waste sorting circuit was approved by the Board of Directors, with an extraordinary capital cost of $22 million to be funded from existing financial resources. Construction on the new circuit commenced in September.
  • At quarter end, cash, cash equivalents and short-term investments stood at $52.6 million. Available liquidity to the Corporation, comprising cash and cash equivalents and available credit facilities, stood at $157.8 million.