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Stornoway Sees Robust Output at Renard Mine
Oct 16, 2017 3:24 AM
By Rapaport News
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RAPAPORT... Stornoway Diamond
Corporation reported higher-than-planned recovery of diamonds from its Renard
mine in Canada in the third quarter and higher average pricing compared to the
first half of the year.
During
the quarter that ended September 30, better-than-expected ore grades in the “Renard
2-Renard 3” open pit led to increased diamond production, with a yield of 442,154
carats, 5% more than the projected 422,475 carats.
“The
third quarter at the Renard diamond mine saw continued robust carat production
with a 12% beat on recovered grade [in carats per hundred tonnes] compared to
our mine plan,” said Stornoway president and CEO Matt Manson.
“During
the quarter we saw growth in carats sold, gross sales revenue and average
pricing compared to the first half of the year, despite a rough-market
correction at the end of the quarter, which served to slow the rate of increase,”
he added.
The
miner earned $41.1 million (CAD 51.6 million) from two sales in the third
quarter, with 438,632 carats of rough fetching an average price of $94 (CAD 118) per carat.
This compares to an average price of $81 (CAD 108) achieved in the first
quarter and $87 (CAD 117) per carat in the second quarter.
However,
the annual average price for the fiscal year ending December 31 is likely to
fall below Stornoway’s 2017 guidance of $100 to $132 per carat, given the
outlook for the rough-diamond market, the miner said.
Stornoway
will hold two further tender sales in the fourth quarter.
Total
output from when the Renard mine began processing in July 2016 to September 30,
2017, was 1.69 million carats, surpassing the 1.5 million carats the company
projected in its March 2016 mine plan.
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Tags:
Canada, Matt Manson, Rapaport News, renard, stornoway, Stornoway Diamond Corporation
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