News

Advanced Search

Stornoway to Restart Operations at Renard

Sep 15, 2020 7:08 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT...
Stornoway Diamond Corporation plans to resume operations at its Renard mine in Canada this month after half a year of inactivity, according to a minority shareholder.

The miner, which was acquired by its lenders last year following heavy losses and mounting debt, closed the deposit in March as a result of the challenges imposed by the coronavirus pandemic. The resumption follows a review of operations in which Stornoway agreed to reduce costs by $30 million over the next 16 months, shareholder Osisko Gold Royalties said Monday.

Stornoway’s shareholders will invest an additional $30 million in the company to support operations until the diamond market has recovered. They will also defer all loan payments until April 2022.

“The Stornoway team has shown an ability to operate the Renard mine efficiently, and the near-term cost reductions will further help improve profitability,” said Osisko CEO Sean Roosen. “We feel there is significant value in the Renard mine given the scarcity of diamond mines globally and the approximately $1 billion of well-built infrastructure.”

The miner currently has $10 million in cash, as well as 332,000 carats of rough inventory, which it expects to sell later this year. Stornoway was not available for comment at press time.

Image: The Renard mine. (Stornoway Diamond Corporation)
Tags: Osisko Gold Royalties, Rapaport News, renard, Sean Roosen, stornoway, Stornoway Diamonds
Similar Articles
Jonathan Kendall, De BeersDe Beers Exec Jonathan Kendall to Retire
Nov 15, 2020
Jonathan Kendall, a key executive in De Beers’ downstream activities, will retire at the end of the year following
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2020 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.