RAPAPORT… Firestone Diamonds plans to sell a portion of its inventory next month to assess the prices it can secure for its rough stones as the market begins to recover.
The miner is holding 64,700 carats of rough from its Liqhobong mine in Lesotho, which has been on care and maintenance since April due to the coronavirus pandemic. It will separate those into at least two parcels and place them on tender when the company needs operating cash, it said last week.
Those parcels will “test the market to determine the extent to which diamond prices have recovered, specifically for the Liqhobong diamond assortment, which will in turn inform the strategy of restarting the mine,” the company noted.
Firestone has also negotiated a deal with Absa, one of its lenders, to allow it to defer repayment of its debt until September 2021. The miner is still in discussions with other bondholders to find a long-term solution for repayment of its high debt levels.
The company currently has $7.3 million in operating cash, compared with $9.6 million three months ago.
Image: Rough diamonds from the Liqhobong mine. (Firestone Diamonds)
Firestone to Test Diamond Prices in November
The Bottom Line
- Firestone plans to tender at least two parcels totaling 64,700 carats of rough diamonds from the Liqhobong mine to gauge current market prices.
- The Liqhobong mine has been on care and maintenance since April due to the COVID-19 pandemic.
- Firestone secured a debt repayment deferral with lender Absa until September 2021 while negotiating with other bondholders.
More Stories
Deloitte: Holiday Spending to Reach $1.71T
US revenue is likely to increase up to 4.8% year on year from November 2026 through January 2027.
Emerald Prices Improve at Gemfields Auction
Miner sells 100% of its 3 million carats of commercial-quality goods for $29.6 million.
Sarine Opens New Lab in Mumbai
Company also has facilities in New York and Surat.
