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RAPAPORT... Stornoway Diamond Corporation closed its fourth quarter on April 30 with cash, cash equivalents and short-term investments of $363.6 million, compared with $27.4 million one year earlier. Current cash resources are sufficient to cover planned mine development expenses, financing and corporate costs during calendar 2015 at the Renard diamond project. The second and third payment deposits under the stream agreement of $80 million and $90 million are expected to be received in September and March 2016, respectively, following which Stornoway expects to draw on a $100 million senior secured loan in late 2016 to complete Renard. The net loss for the fourth quarter totaled $8.5 million, up from a loss of $7.9 million one year earlier.
Renard's construction progress stood at 22.4 percent completed on April 30, based on man-hour estimates, compared to a planned 21.7 percent, with a key construction milestone being achieved -- the principal concrete pour for the foundations of the project's process plant, which was achieved three weeks ahead of schedule. Stornoway stated that construction of its 2.2 million tonne per year processing plant represents the project's critical path activity. The plant building is scheduled to be completed and heated by the fourth quarter of 2015, allowing the installation of the temperature-sensitive crushing and recovery circuits through the first half of calendar 2016.
Commercial production at Renard is on schedule to begin in the second quarter of calendar 2017 and full production by the summer of that year. Manpower at Renard in April averaged 330 workers, of which 32 percent were local Crees, of the Eeyou Istchee, while Stornoway employees, at site and in the development team, stood at 232 on April 30, of which 31 percent were Crees, 23 percent were from Chibougamau and Chapais and 46 percent were from outside the region. Of all on-site construction procurement to date, 25 percent of contracts have been awarded to Cree-owned businesses originating in Mistissini, 20 percent in Chibougamau and Chapais, 25 percent in Saguenay-Lac St. Jean, 11 percent in the Abitibi region and 19 percent in other regions of Quebec. Stornoway retains an ownership interest in two other diamond exploration projects, both operated by North Arrow Minerals Inc., Qilalugaq and Pikoo in northern Saskatchewan.
Matt Manson, Stornoway's president and CEO, said, "During the fiscal year just ended, Stornoway successfully completed a $946 million project financing transaction for the Renard diamond project and commenced its construction. The Stornoway team has achieved a good start over the project's first 10 months, with both cost and schedule tracking within plan. We have benefited from a favorable construction and labor market and from having all funding, authorizations and the project's access infrastructure in-hand up-front.
"Over the previous three quarters we have also seen a strengthening of our balance sheet as the depreciating Canadian dollar serves to create a foreign exchange gain on the U.S. dollar denominated portions of our funded and committed financing sources compared to our original funding plan. As we ramp up construction, we have prioritized employment and contracting amongst the Crees of the Eeyou Istchee, including the Cree Nation of Mistissini, and the communities of Chibougamau and Chapais and maintained a commendable environmental, health and safety record. These achievements are consistent with our stated commitments and will remain our focus as we prepare for the transition to mine operations starting in late 2016. Our objective at Renard is an efficient and profitable operation, socially and environmentally responsible, delivering high quality Quebec diamonds for sale starting in a little over 18 months' time," he said.
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