28th Mar 2019 11:27
LONDON (Alliance News) - Firestone Diamonds PLC on Thursday said its loss narrowed sharply in the first half of its current financial year on improved production.
The AIM-listed diamond mining company reported a loss of USD6.7 million for the six months to the end of December 2018 narrowed USD10.3 million reported for the same period a year earlier.
Firestone's revenue increased by 5.4% to USD27.4 million from USD26.0 million year-on-year, as the company recovered 465,6820 carats in the first half, up 23% from 379,716 carats in the first half of its financial 2018.
"Production is on track to meet guidance and we once again did well to manage costs, which are well below full year guidance," said Chief Executive Paul Bosma.
Full-year production guidance for Firestone stands in the range of 3.6 million tonnes and 3.8 million tonnes.
Cash operating cost per tonne treated, including waste, totalled USD10.96, down from USD11.97 the prior year, compared to full year guidance of USD15 to USD16 per tonne treated.
Average value per carat stood at USD71 during the period, down from USD74 the year before, impacted by prices for smaller, lower value diamonds.
Firestone said an average value of USD90 per carat was realised at the most recent sale which concluded on Friday last week, resulting in a higher average value realised of USD80 for the third quarter of its current financial year, and USD74 per carat for the first nine months of the financial year.
"The second half of 2018 saw a global price slump in the smaller, lower value goods which negatively impacted our average dollar per carat achieved," explained Bosma.
Firestone shares were trading 4.4% lower on Thursday at 2.27 pence each.
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