16th Mar 2016 08:40
LONDON (Alliance News) - Firestone Diamonds PLC Wednesday said it is fully funded until its flagship diamond mine in Lesotho begins producing toward the end of 2016, as it reported a marginally wider loss in the first half of the financial year.
The diamond development company, which does not currently generate any revenue, said its pretax loss in the first half of its current financial year was slightly wider at USD4.6 million from the USD4.4 million loss a year earlier after some of its costs were a smidgen higher.
The company said its flagship Liqhobong diamond mine in Lesotho is 68% complete and remains on track to begin initial production in the fourth quarter of this year.
However, Firestone said the capital budget has been revised to ZAR2.10 billion, but said this remains within the original budget of USD185.4 million. Based on current exchange rates, that revised budget equates roughly to USD130.7 million.
Cash at the end of 2015 stood at USD18.1 million, of which USD14.2 million was cash-on-hand, making the company fully funded until production starts later this year.
Firestone shares were down 2.2% to 19.82 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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