Firestone Revenue Rises in Second Quarter

RAPAPORT… Sales grew at Firestone Diamonds in the second fiscal quarter as stronger volumes outweighed a lower average price, the miner reported Monday.



Proceeds from rough sales at the company’s Liqhobong mine in
Lesotho increased 11% year on year to $13.9 million for the period ending
December 31, according to Rapaport calculations. Sales volume rose 22% to
191,735 carats, with the miner achieving an average price of $72 per carat, compared to $80 the previous year.


“We had a reasonable second quarter…ending the financial
half year with all our production parameters on track to meet guidance by year-end,” said CEO Paul Bosma. “The demand for the smaller, lower-value stones
deteriorated further during the quarter, [however] it stabilized at the
December sale.”


Firestone’s production rose 24% to 224,947 carats, aided by
the late arrival of summer rain, which allowed the company to continue mining
in the southern, higher-grade portion of the pit. The miner expects the grade
to drop in the second half of fiscal 2019 when it returns to the northern
portion of the pit during the rainy season, it said. 


In July through December, the company unearthed 465,680
carats of rough. It is on track to meet its guidance of between 820,000 and
870,000 carats for the full fiscal year ending July 31, it added.


Image: Liqhobong mine. (Firestone Diamonds)