|
|
Stornoway Upbeat on Revenue After 2016 Profit
Feb 26, 2017 9:25 AM
By Rapaport News
|
|
|
RAPAPORT... Stornoway Diamond Corporation recorded a profit in 2016 due
to a tax refund, and received a performance boost from the launch of the Renard
mine in October.
The company reported a net income of $15 million (CAD 19.6
million) for the year, versus a loss of $2.8 million in the
comparable period of 2015. A deferred tax payment of $35.4 million lifted the
company’s bottom line, as the company has yet to record revenue from the mine.
The mine reached commercial production – meaning 60 percent
of processing capacity – in December, a month ahead of schedule.
“Our successful project build and earlier operational
startup has contributed to a greatly strengthened balance sheet compared to
what was contemplated in our original July 2014 project financing plan,” Matt
Manson, Stornoway’s chief executive officer, said last week.
The first sale of rough diamonds from Renard took place in
November in Antwerp, fetching $7.6 million at an average price of $195 per
carat. This exceeded the projected average price of $155 per carat, mainly
because a liquidity squeeze in India and a subsequent drop in demand for
smaller diamonds prompted the company to withdraw lower-value goods from the
sale.
The sale will be accrued to Stornoway's 2017 revenue, which the
company anticipates will reach between $180 million and $230 million. It
said it expects an average sale price of $100 to $132 per carat.
The company is seeing an improvement in the market for
lower-quality categories, and stronger premiums for the larger, higher-quality
goods, Manson added.
Stornoway held two sales in the first quarter of this year
and plans another two by the end of March. Average annual diamond production is
expected to be 1.8 million carats per year for the first 10 years.
|
|
|
|
|
|
|
|
|
|
Tags:
Canada, Matt Manson, mines, mining, Rapaport News, renard, Renard mine, Rough Diamonds, stornoway, Stornoway Diamond Corporation
|
|
|
|
|
|
|
|
|
|
|
|
|