4th Dec 2019 10:53
(Alliance News) - Shares in Firestone Diamonds PLC jumped Wednesday as it confirmed stable power has returned to the Liqhobong mine in Lesotho.
The stock was up 65% on Wednesday morning in London at a price of 0.70 pence a share.
London-based Firestone has been grappling with power problems at the mine since October, with the Muela hydropower station, where it gets electricity, undergoing a two-month maintenance programme.
The power station resumed operations on Sunday, Firestone said, meaning the processing plant at the Liqhobong mine has resume full capacity operations. It has been operating since late October, when generators were brought in, but not at full capacity.
Firestone has booked USD1.1 million of extra costs from the use of the generators, and it has also filed an insurance claim over loss of profit.
The company recovered 829,458 carats of diamonds during its last financial year, ended June. It mines from Liqhobong, but also has the BK11 mine in Orapa, Botswana which is currently on care & maintenance.
By George Collard; [email protected]
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