Reporting its unaudited interim results for the six month period ended 30 June 2016, DiamondCorp plc said that “After adjustments for a stronger Rand exchange rate”,  it had reduced its pre-tax loss for the first six months of  the  year to £ 0.247 million as compared with a loss of £ 3.159 million incurred in the same period in 2015.

The Company reported that administrative expenditure for the period increased to £ 0.893 million (£0.672 million in 2015). “The increase is primarily due to a timing change on audit remuneration, as well as additional administrative expenses as the company is moving from development into production,” the Company explained.

DiamondCorp’s total assets at 30 June stood at  £ 39.227 million (£32.719 million in 2015) and liabilities amounted to  £ 28.456 million (£25.219 million in 2015).

“Cash at 30 June was £0.108 million,” the Company reported. “After the period end, a further £ 2.0 million was raised through a share issue.”

Providing an operational update on its Lace Mine, DiamondCorp reported that production from the first mining block on the 310m level was impacted during August by a number of operational issues, which it elaborated upon. 

“Management considers these operational issues are not unusual in the ramp up of underground mining operations,” DiamondCorp said. “Further, the financial impact of the operational issues is expected to be met by existing cash and a new third party convertible debt facility. Several offers of new working capital facilities are currently being assessed and management is confident that such facility will be in place in the coming weeks.”

Currently, mining is progressing in “predominately high-grade K4 kimberlite” the Company stated.  

“The diamonds yielded during August remain of a high quality, and four stones larger than 10 carats were recovered, including a 12.7 carat gem diamond,” the Company added. “These diamonds will be sold in the October sale.”

The production forecast for the remainder of 2016 has been”re-budgeted” for 20,000 tonnes in September; 25,000 tonnes in October; and 30,000 tonnes in each, November and December, DiamondCorp announced.

The Company said its diamond sales schedule has been reorganised “to maximise attendance by clients who have been absent from Antwerp during various religious holidays as well as the De Beers August sale”.

Accordingly, DiamondCorp gave out that the first tender will now be concluded on September 17, 2016 and results will be announced on September 20, 2016.

“Subsequent monthly sales will be concluded around the middle of each month,” the Company announced.

“The Company's current diamond inventory is 7,003 carats,” the Company reported. “It takes between 30 and 45 days for diamonds recovered to move from the mine to Antwerp and be sold. As a consequence, the October sale will be relatively small but monthly sales are expected to build up to the 9,000 carat base case in the budget by December.”