Stornoway finishes year with revenue down, losses up

Stornoway Diamond (TSE: SWY) finished the 2018 calendar year with less production and revenue and more losses. Total net loss for the year was $329.4 million or $0.39 per share, compared to a net loss in 2017 of $114.2 million or $0.14 per share.

The company pointed out that those numbers include a non-cash impairment of $83.2 million, a deferred income tax expense of $77.4 million, and $227.1 million for the cost of goods sold.

Stornoway also recorded lower tonnage through the plant, recovered carats, and sold carats. Last year it sent 2.3 million tonnes through the plant (compared to 2.0 million in 2017), recovered 1.3 million carats (1.6 million), and sold 1.2 million carats (1.7 million).

At the same time cash costs per tonne took a jump. The costs per tonne of kimberlite processed rose to $57.10 or $100.40 per carat. In 2017 the cost per tonne was $42.10 and $54.90 per carat recovered.

The Renard mine finished the year with an indicated resource of 3.7 million carats in 8.7 million tonnes at 42.3 cpht and an inferred resource of 13.0 carats in 23.4 million tonnes at 55.8 cpht. These resources are exclusive of mineral reserves. There is also an exploration upside of 32.8 million to 71.3 million carats, but this potential cannot be included in resources.

(This article first appeared in the Canadian Mining Journal)

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