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Stornoway Sees Robust Output at Renard Mine

Oct 16, 2017 3:24 AM   By Rapaport News
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Stornoway Diamond Corporation reported higher-than-planned recovery of diamonds from its Renard mine in Canada in the third quarter and higher average pricing compared to the first half of the year.

During the quarter that ended September 30, better-than-expected ore grades in the “Renard 2-Renard 3” open pit led to increased diamond production, with a yield of 442,154 carats, 5% more than the projected 422,475 carats.

“The third quarter at the Renard diamond mine saw continued robust carat production with a 12% beat on recovered grade [in carats per hundred tonnes]  compared to our mine plan,” said Stornoway president and CEO Matt Manson.

“During the quarter we saw growth in carats sold, gross sales revenue and average pricing compared to the first half of the year, despite a rough-market correction at the end of the quarter, which served to slow the rate of increase,” he added.

The miner earned $41.1 million (CAD 51.6 million) from two sales in the third quarter, with 438,632 carats of rough fetching an average price of $94 (CAD 118) per carat. This compares to an average price of $81 (CAD 108) achieved in the first quarter and $87 (CAD 117) per carat in the second quarter.

However, the annual average price for the fiscal year ending December 31 is likely to fall below Stornoway’s 2017 guidance of $100 to $132 per carat, given the outlook for the rough-diamond market, the miner said.

Stornoway will hold two further tender sales in the fourth quarter.

Total output from when the Renard mine began processing in July 2016 to September 30, 2017, was 1.69 million carats, surpassing the 1.5 million carats the company projected in its March 2016 mine plan.
Tags: Canada, Matt Manson, Rapaport News, renard, stornoway, Stornoway Diamond Corporation
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