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Renard Output and Sales Fall in 2Q

Jul 8, 2018 9:56 AM   By Rapaport News
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RAPAPORT... Stornoway Diamond Corporation saw production and sales drop in the second quarter amid a slowdown while the company transitions from open-pit to underground mining.

The miner produced 223,351 carats from its Renard mine in the three months ending June 30, a 46% decline compared with the same period last year.

The company sold 201,283 carats at two tenders, versus 350,159 carats across the same number of tenders in the second quarter last year. Total sales fell 30% to $21.8 million (CAD 28.6 million). The average price climbed 25% to $109 per carat.

“Our second-quarter production-and-sales report reflects the ongoing transition from open-pit to underground mining,” CEO Matt Manson said Friday.

The miner expects output to improve once underground production is up and running.

“Initial diamond results are encouraging, and given the volume and quality of the waste that is being rejected, we see the potential for processing capacity in our plant beyond its current nameplate rating,” Manson added. The company expects higher processing rates, grades and carat recovery in the second half of the year.

In May, Stornoway reduced its production expectations for the year to between 1.35 million and 1.4 million carats, from its initial forecast of 1.6 million carats.
Tags: Matt Manson, Rapaport News, renard, stornoway, Stornoway Diamond Corporation
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