Firestone Diamonds (FDI:AIM)
The Liqhobong Diamond Mine, 75% owned by Firestone and 25% by the Government of Lesotho, is ramping up to nameplate capacity after completing construction in early Q4, 2016. First diamond recoveries occurred in late October 2016. By the end of the quarter ended 31 December 2016, over 20 special stones larger than 10.8 carats were recovered; with the largest being a 37 carat white diamond, as well as many fancy yellow diamonds. The processing of lower grade stockpiles and diluted ore produced 58,000 carats, at a grade of 14.4 carats per hundred tonnes. The grade is below the initial commissioning estimates and the company is currently focused on making adjustments and investigating potential causes.
Nameplate capacity of 500 tonnes per hour for 24 consecutive hours was achieved on multiple occasions. The company is on target to achieve nameplate production by the beginning of Q2 2017. By the end of Q4 2016, 402k tonnes had been treated by the processing plant with operating cost at the bottom end of guidance, in the amount of US$12 per tonne treated. The company ended the quarter with US$4 million in cash and US$14m under the ABSA debt facility, in addition to a US$15m standby facility.
The first sale of Liqhobong diamonds will occur in Antwerp, Belgium from 6-10 February 2017.