6th Mar 2014 13:16
LONDON (Alliance News) - Firestone Diamonds PLC Thursday said its pretax loss remained flat in its first half, as lower costs offset a significant fall in revenues at the company.
The diamond development company said its pretax loss remained flat at GBP4.9 million for the six months ended December 31 despite a 49% fall in revenues to GBP2.6 million from GBP5.1 million in the same period during 2012.
The company said its revenues fell as a result of a 27% fall in diamond sales to 58,086 carats from 72,833 carats the previous year, and an average price fall to USD69 per carat from USD102 per carat in 2012.
Firestone said its fall in revenues was partly offset by a 22% fall in its cost of sales to GBP4.9 million from GBP6.3 million the previous year. This was mainly due to lower production activity resulting from its Liqhobong mine in Lesotho being placed under care and maintenance in October, as the company prepared for the construction of its main treatment plant.
The company also said lower finance costs and losses from its discontinued operations helped the company's finances to remain largely flat.
It added that its BK11 mine in Botswana also remains under care and maintenance, and the board is continuing to consider various strategic alternatives for the site, including disposal or joint venture, recognising that getting good value from the asset in the current market could be challenging.
Firestone Diamonds shares were down 2.7% to 3.53 pence Thursday afternoon.
By Tom McIvor; [email protected]; @TomMcIvor1
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