Renard’s Average Price Soars in Fourth Quarter

RAPAPORT… Average prices for rough from Stornoway Diamonds’ Renard mine in Canada jumped in the fourth quarter during a strong period for the market.

The miner, which restarted operations in September 2020 following an extended period of care and maintenance, held two diamond sales during the three months ending December 31. Stornoway sold 248,710 carats at its first sale at an average price of $104 per carat, according to Osisko Gold Royalties, which owns a 35% share in the company. At its second sale, the company sold a further 242,343 carats at an average price of $128 per carat. The price per carat during the quarter increased 54% from the same period a year earlier.

For the full year, the miner sold 1.8 million carats of rough diamonds at an average price of $94 per carat, Osisko noted in a statement earlier this month.

Osisko’s portion of revenue from diamonds came to $6.9 million in the fourth quarter, it said. The company is entitled to 9.6% of Stornoway’s diamond sales as part of the acquisition agreement.

Osisko and other Stornoway creditors took over the company in 2019 following heavy losses and mounting debt at the miner. The lenders also invested an additional $30 million in the company to support operations amid the pandemic. Stornoway has until April 2022 to begin returning outstanding loans, along with payments to Osisko for its portion of earnings from diamond sales.

Image: Rough diamonds from the Renard mine. (Stornoway Diamonds)