Stornoway announces second quarter 2019 production and sales results
10 July 2019
Stornoway Diamond Corporation announces production and sales results at the Renard Diamond Mine for the quarter ended June 30, 2019. Highlights are as follows:
460,832 total carats sold in two tender sales for gross proceeds1 of $47 million2 at an average price of US$76 per carat ($102 per carat2). In terms of total carats sold, pricing and gross proceeds, this represents variations of +7%, -9% and -1% over the first quarter, respectively. Second quarter diamond sales represent diamonds recovered during the first quarter.
Second quarter diamond production was 463,136 carats recovered from the processing of 695,934 tonnes of ore at an average grade of 67 carats per hundred tonnes (“cpht”). Carats recoveries increased by 4% compared to the first quarter, mainly due to greater plant utilization. The average processing rate was 7,648 tonnes per day, above the budgeted rate of 7,000 tonnes per day.
Patrick Godin, President and CEO of Stornoway, commented “During the second quarter, both mining and processing operations at Renard have demonstrated strong performance, with an average ore hauling rate of 6,813 tonnes per day from the underground mine, and an average processing rate well above the budgeted rate. The average grade recovered is lower than for the first quarter, as a result of mining of lower grade ore blocks from the block cave sequence at Renard 2. The average grade is anticipated to increase for the remainder of the year, as the extraction of higher grade production ore from the Renard 3 kimberlite pipe ramps up, and with the development of the second underground mining horizon of Renard 2, also of higher average grade. The rough diamond market continues to be challenging, with further decreases in pricing observed during the second quarter sales. Nevertheless, the Corporation maintained comparable gross proceeds relative to the first quarter, as volume of carat sold increased.”
SECOND QUARTER SALES RESULTS
Two tender sales were completed during the second quarter from diamonds recovered between December 27, 2018 and March 29, 2019. Table 1 summarizes second quarter sales results and compares these results to those of the first quarter of 2019 and to those of the second quarter of 2018. Table 2 provides a breakdown between run-of-mine and supplemental diamonds sold.