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Stornoway Reduces Quarterly Loss as Flagship Renard Project Stays on Track

Sep 17, 2015 1:49 AM   By Rapaport News
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RAPAPORT... Stornoway Diamond Corporation, an exploration and development company listed on the Toronto Stock Exchange, pared its quarterly loss from a year ago as construction at its Renard Diamond Project continued in line with planned schedule and budget.

Net loss for the three months that ended July 31 fell by $1.4 million (CAD $1.8 million) to $7.3 million, compared with a loss of $8.7 million in the previous year, the company said in a statement on September 14.

Several items not reflective of Stornoway's underlying operating performance, including changes in the fair value of a derivative and unrealized gains and losses from foreign exchange hit the quarterly result, the company said. Commitments and costs incurred for the Renard project during the period under review were 50 percent of the budget. The project, Stornoway’s flagship asset, is on track to becoming Québec's first diamond mine, according to the Canadian miner.

“Construction progress continues to track ahead of plan, principal engineering is nearing completion, and all major facilities are on track to be enclosed and heated prior to the onset of cold weather conditions,” Matt Manson, president and chief executive officer of Stornoway, said in the statement.

While engineering progress at the Renard site was pegged at 80 percent, slower than the planned 87 percent, the overall advancement of construction stood at 35 percent, which is above the 33 percent expected during the three months.

“We continue to see an increase in the forecast amount of excess funding capacity available to complete the project given our undrawn cost overrun facilities and the impact of the depreciating Canadian dollar on the value of our current and committed U.S. dollar funds,” Manson said.

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