3rd Jun 2014 14:54
LONDON (Alliance News) - Diamondcorp PLC Tuesday said it narrowed its losses in 2013 due to further cuts in overhead costs and general and administrative expenses.
The diamond producer reported a pretax loss of GBP2.6 million in 2013, compared with a loss of GBP3.5 million in 2012.
The group said it held cash at year end of GBP2.2 million, and said it raised a further GBP2.10 million in gross proceeds in April.
Diamondcorp said that it made major advances in its development of the Lace underground mine in South Africa during the year, and said that the Lace mine is fully funded to production, which it said is expected to begin earlier than previously expected.
The company said that prices for rough diamonds remain firm with a positive outlook for the medium and longer term. Rough diamond prices fell during 2013 in response to the weakening Indian rupee and continuing tight credit markets for cutters and polishers. Polished prices on the other hand improved in response to improving economic conditions, particularly in the US, which remains the largest single market for diamond jewellery.
"This was a healthy development as earlier increases in rough prices had not been matched at the retail end which had the potential to destabilise the market," the company said in a statement.
Diamondcorp shares were trading 1.6% higher at 6.22 pence Tuesday afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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