23rd Oct 2019 10:33
(Alliance News) - Firestone Diamonds PLC is to review annual guidance, it said on Wednesday, following "unexpected" power cuts.
London-based Firestone said at the start of October that power cuts meant the Liqhobong mine in Lesotho has been unable to operate, and the firm said on Wednesday it does not expect to be able to restart production until early November.
"The recent power interruption is an unexpected setback for the company but we are doing our utmost to limit the negative impact on production by renting generators to get operations up and running again until the grid power is back online and stable. We will advise on any adjustments to guidance in future quarterly updates," said Chief Executive Paul Bosma.
For the three months to September, Firestone's first quarter, the company recovered 201,091 carats of diamonds, 3.6% lower than the last quarter of its prior financial year ended June. Grades were 21 carats per hundred tonnes, 8.7% lower.
Firestone carried out one diamond sale during the period, selling 168,612 carats at USD63 per carat on average, netting revenue of USD10.6 million carats. This revenue figure is 17% lower than that registered in the prior quarter.
"The first quarter performance was again solid from an operational perspective. However, from a market perspective, pricing remains subdued," said CEO Bosma.
"The company continues to engage with its debtholders to ensure it can sustain operations through the current downturn and further announcements in this regard can be expected in due course."
Firestone expects prices for smaller diamonds to increase towards the end of 2020, in part due to the closure of the Argyle mine in Australia, which is operated by Rio Tinto PLC.
Shares were untraded on Wednesday in London, last quoted at 0.58 pence each.
By George Collard; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
FDI.L