Stornoway clocks net income of CAD$ 2.3 million in June quarter

Diamond sales amount to 350,159 carats proceeds of $40.9 million
Image Courtesy: Stornoway Diamond Corporation
Image Courtesy: Stornoway Diamond Corporation

Stornoway Diamond Corporation announced its results for the quarter ended June 30, 2017. The company clocked a net income of CAD$ 2.3 million or $Nil per share on a basic and fully diluted basis. Matt Manson, president and CEO commented: “Our second quarter saw the attainment of full nameplate processing capacity at Renard, achieved by the end of June on schedule. Capital and operating costs continue within plan, and our business has again demonstrated a strong cash operating margin. Grade and carats produced for the quarter reflect the processing of a higher proportion of lower grade ore from our stockpiles.

he further added that, “We are particularly encouraged by the steady increase in pricing for Renard diamonds as the market familiarizes itself with our production. Pricing continues to be impacted by high levels of diamond breakage, and our work to date on this issue has shown that reducing the proportion of hard, country rock waste in the ore feed will have a meaningful impact on our recoveries. To this end the Stornoway board has approved additional capital expenditures of C$22 million, from existing funds, to add a waste sorting circuit to our process plant.”

Production reached a milestone of reaching one million carats of diamonds produced. The company attained nameplate processing capacity, on schedule. 417,362 carats were recovered during the quarter from the processing of 512,005 tonnes of ore compared to the planned 486,591 carats from 513,000 tonnes, due to the processing of lower grade ore (at 82 cpht compared to a plan of 95 cpht). Diamond sales of 350,159 carats were completed with proceeds of $40.9 million. Average diamond pricing achieved at sale of US$87 per carat ($117 per carat), compared to US$81 per carat in the first quarter. An additional 151,135 carats were sold subsequent to quarter end for proceeds of $19.8 million, at an average price of US$101 per carat ($128 per carat). Overall, pricing for Renard diamonds has increased +19 percent since sales began (expressed in real terms after accounting for size distribution and quality variations).

Adjusted EBITDA1 of $15.1 million, or 35.6 percent of sales.


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