You can use your smart phone to browse stories in the comfort of your hand. Simply browse this site on your smart phone.

    Using an RSS Reader you can access most recent stories and other feeds posted on this network.

    SNetwork Recent Stories

Stornoway Announces Second Quarter 2019 Production and Sales Results

by ahnationtalk on July 10, 201968 Views

LONGUEUIL, Quebec, July 10, 2019 — Stornoway Diamond Corporation (TSX-SWY; the “Corporation” or “Stornoway”) announces production and sales results at the Renard Diamond Mine for the quarter ended June 30, 2019. Highlights are as follows:

(All quoted figures in CAD$ unless otherwise noted)

  • 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.

Table 1 . Summary of second quarter sales results.

3 months ended
June 30, 2019
3 months ended
March 31, 2019
3 months ended
June 30, 2018
Number of tender sales   2   2   2
Total Carats Sold (ct)   460,832   429,506   243,262
Total Gross Proceeds1 ($M)   47   47   30
Total Average Price per Carat ($/ct)   102   110   122
Total Average Price per Carat (US$/ct)   76   83   93
Average Exchange Rate ($ : US$)   1.34   1.33   1.31

Table 2 . Summary of second quarter sales results, broken down between run-of-mine 3 and supplemental carats.

3 months ended
June 30, 2019
3 months ended
March 31, 2019
3 months ended
June 30, 2018
Run-of-mine Carats Sold (ct)   386,459   361,404   201,283
Run-of-mine Average Price per Carat ($/ct)   118   127   142
Run-of-mine Average Price per Carat (US$/ct)   88   95   109
Supplemental Carats Sold (ct)   74,373   68,102   41,979
Supplemental Achieved Price ($/ct)   17   20   25
Supplemental Achieved Price ($US/ct)   13   15   18

The achieved pricing of US$76 per carat for all goods sold during the quarter represents a decrease of 9% compared to the first quarter of 2019, attributed to weak market conditions. During the second quarter, pricing of higher quality goods and specials was also negatively affected by the oversupply of rough diamonds relative to demand, the high inventory levels in the mid stream and the reduced availability of bank financing in India. Smaller and lower quality goods continue to sell at the lower prices experienced in the fourth quarter of 2018 and first quarter of 2019.

SECOND QUARTER PRODUCTION RESULTS

Second quarter production was 463,136 carats recovered from the processing of 695,934 tonnes of ore at an attributable grade of 67 cpht. Tonnes processed and carats recoveries increased by 19% and 4% respectively compared to the first quarter mainly as a result of higher plant availability. Grade recovered decreased by 13% due to the mining of lower grade blocks as part of the mining sequence. Tonnes processed, grade and carats recovered increased by 24%, 68% and 107% year over year, due to the ramp up of underground operations and the improved mix of ore sent to the process plant.

During the quarter, process plant feed was derived from the Renard 2 underground mine (87%), the Renard 65 stockpiles (9%), and the Renard 3 underground mine (4%). Average daily processing rates in April (7,734 tonnes per day), May (7,320 tonnes per day) and June (7,899 tonnes per day) were all higher than the budgeted rate of 7,000 tonnes per day as a result of improvements in plant availability and utilization. The average ore tonnage hauled to surface from the underground mine was 6,813 tonnes per day during the second quarter, significantly above the design capacity of 6,000 tonnes per day.

QUALIFIED PERSON

Disclosure of a scientific or technical nature in this press release was prepared under the supervision of Mr. Patrick Sévigny, P.Eng. (Québec), Vice President, Operations, a “qualified person” under National Instrument (“NI”) 43-101.

ABOUT THE RENARD DIAMOND MINE

The Renard Diamond Mine is Quebec’s first producing diamond mine and Canada’s sixth. It is located approximately 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau in the James Bay region of north-central Québec. Construction on the project commenced on July 10, 2014, and commercial production was declared on January 1, 2017. Average annual diamond production is forecast at 1.8 million carats per annum over the first 10 years of mining. Readers are referred to the technical report dated January 11, 2016, in respect of the September 2015 Mineral Resource estimate, and the technical report dated March 30, 2016, in respect of the March 2016 Updated Mine Plan and Mineral Reserve Estimate for further details and assumptions relating to the project.

ABOUT STORNOWAY DIAMOND CORPORATION

Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY and headquartered in Montreal. A growth-oriented company, Stornoway owns a 100% interest in the world-class Renard Mine, Québec’s first diamond mine.

On behalf of the Board
STORNOWAY DIAMOND CORPORATION
/s/ “Patrick Godin”
Patrick Godin
President and Chief Executive

For more information, please contact Alexandre Burelle (Manager, Investor Relations and Business
Development) at 450-616-5555 x2264
or toll free at 1-877-331-2232
Pour plus d’information, veuillez contacter Alexandre Burelle (Directeur, Relations avec les investisseurs
et développement des affaires) au 450-616-5555 x2264, aburelle@stornowaydiamonds.com.
** Website: www.stornowaydiamonds.com Email: info@stornowaydiamonds.com **

NT4

Send To Friend Email Print Story

Comments are closed.

NationTalk Partners & Sponsors Learn More