6th Oct 2015 08:56
LONDON (Alliance News) - Firestone Diamonds PLC on Tuesday said it has made progress at its Liqhobong mine in Lesotho and said first production remains on track for the fourth quarter of next year, as it posted a narrower pretax loss for its last financial year.
Firestone said construction on the Liqhobong mine was 49% complete at the end of September, slightly behind its 50% target, though first production is still expected in the fourth quarter of 2016. The grid power project for the mine is ahead of schedule and within budget.
The company also has received a new geological model for the project which has reconfirmed the project economics and set out a new mine plan which cuts the financing costs of the mine and improves the payback period.
"The new mine plan and project economics announced today has been a culmination of over a year's work and importantly, further de-risks and enhances the project's economics following on from the 2013 definitive feasibility study," said Stuart Brown, Firestone's chief executive.
The progress at Liqhobong came as the company posted a narrower pretax loss for the year to the end of June of USD7.2 million, compared to USD10.5 million a year earlier.
The loss a year earlier was driven by higher administrative costs and by the group delivering USD4.0 million in revenue, which was offset by USD8.5 million in cost of sales. This year, it delivered no revenue and, therefore, no cost of sales.
The company said its focus remains on Liqhobong and on meeting its target of developing into a 1 million carats-a-year diamond producer.
Shares in Firestone were down 2.6% to 22.9 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
FDI.L