15th Nov 2019 11:31
(Alliance News) - Shares dropped in Botswana Diamonds PLC on Friday as it reported a widened loss for its recently ended financial year, on a higher impairment of exploration and evaluation assets.
Shares in the diamond miner - which is headquartered in Dublin - were 7.6% lower at 1.04 pence on Friday in London.
For the year to the end of September, Botswana Diamonds reported a pretax loss of GBP772,104, widened from GBP557,657 the year before, as impairments of exploration and evaluation assets rose to GBP435,139 from GBP179,524.
The impairments relate to the relinquishing of some licences held by the group in its subsidiary firm Sunland Minerals Pty Ltd.
Botswana Diamonds did not generate any revenue in the year as it continued to develop its projects in South Africa, Botswana and Zimbabwe.
However, on Tuesday the group recovered its first diamonds from commissioning activities on the Marsfontein diamond mine in South Africa.
Looking ahead, Botswana Diamonds said that the general business environment is very uncertain, with Brexit, weaker economic growth in China and the US, and the threat of restrictions on international trade.
The group said that the economic uncertainty has weakened the price of gem-quality diamonds, as they are considered purely as a "luxury item".
Botswana Diamonds will now look to ramp up production at Marsfontein, and restore production at the Thorny River project, also in South Africa.
By Dayo Laniyan; [email protected]
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