Dec 05, 2019

Firestone: Processing Plant Operating at Full Capacity as Stable Grid Power Restored at Liqhobong

Firestone Diamonds plc has announced that its processing plant will once again be operating at full capacity following the restoration of stable grid power at its Liqhobong Diamond Mine in Lesotho.

The power restoration followed the recommencement of operations at the Lesotho Electricity Company's Muela Hydropower Station on December 1, after a two month shut down period for maintenance work.

As reported earlier, the plant ceased operations from October 1, when the power grid was initially shut. Subsequently, from October 26, diesel generators were commissioned, which provided sufficient power for the plant to operate at between 80% and 90% capacity, Firestone said.

The company also reported that additional costs associated with operating the rented diesel generators during this period were approximately US$1.1 million and an insurance claim in respect of the loss of profit and the additional operating costs is in the process of being compiled.

At the end of November, the Group had a cash balance of US$17.0 million, of which US$9.3 was unrestricted.