Stornoway Diamond Corporation Reports Production and Sales Results of Renard Diamond Mine for the Fourth Quarter and Year Ended December 31, 2017; Provides Production and Earnings Guidance for fiscal year 2018
For the year 2017, diamond production of 1.64 mcarats produced from the processing of 1.96 million tonnes of ore with an attributable grade of 84 cpht, compared to a plan of 1.69 million carats from 2.00 million tonnes at 85 cpht (97%, 98% and 99% respectively).
Fourth quarter sales of 453,646 carats sold in two tenders (2017 sales #8 and #9) for gross proceeds of $49.1 million, at an average price of $86 per carat ($108 per carat).
For the year 2017, diamond sales of 1.7 million carats sold in nine tenders and three out of tender sales for gross proceeds of $186.2 million, at an average price of $85 per carat ($109 per carat).
The company provided production and earnings guidance for fiscal year 2018. Approximately 1.6 million carats to be produced from the processing of 2.5 million tonnes of ore at an average grade 65 cpht. Of the 1.6 million carats produced, approximately 1.1 million carats are expected to be larger than +7 DTC sieve size (+3mm) with average pricing between $125 and $165 per carat. Approximately 0.5 million carats are expected to be smaller than +7 DTC sieve size (-3mm) with average pricing of between $15 and $19 per carat. Approximately 1.6 million carats to be sold in 9 tender sales, to be operated through the offices of Stornoway's sales agent Bonas Couzyn in Antwerp, Belgium. Fiscal year 2018 capital expenditures are estimated at $82 million, principally related to the development of the underground mine at Renard. The increase is principally attributable to the transfer into cap-ex of $12 million of site G&A costs associated with underground mine development that were previously budgeted as operating expenses, and spending associated with the $22 million capital program approved by the Stornoway board of directors in August 2017 for a new waste-ore sorting circuit at the Renard Process Plant.