Advanced Search

Firestone to Test Diamond Prices in November

Oct 26, 2020 9:29 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share

Firestone Diamonds plans to sell a portion of its inventory next month to assess the prices it can secure for its rough stones as the market begins to recover.

The miner is holding 64,700 carats of rough from its Liqhobong mine in Lesotho, which has been on care and maintenance since April due to the coronavirus pandemic. It will separate those into at least two parcels and place them on tender when the company needs operating cash, it said last week.

Those parcels will “test the market to determine the extent to which diamond prices have recovered, specifically for the Liqhobong diamond assortment, which will in turn inform the strategy of restarting the mine,” the company noted.

Firestone has also negotiated a deal with Absa, one of its lenders, to allow it to defer repayment of its debt until September 2021. The miner is still in discussions with other bondholders to find a long-term solution for repayment of its high debt levels.

The company currently has $7.3 million in operating cash, compared with $9.6 million three months ago.

Image: Rough diamonds from the Liqhobong mine. (Firestone Diamonds)
Tags: ABSA, Firestone, Firestone Diamonds, Lesotho, Liqhobong, Liqhobong mine, Rapaport News
Similar Articles
Artisanal mining Sierra LeoneNew Project Aims to Restore Damaged Mining Land
May 09, 2022
Nongovernmental organization Resolve has launched a project to rehabilitate land affected by artisanal and small-scale diamond mining
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2022 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.