Firestone Diamonds plc in its quarterly update on operations at its Liqhobong Diamond Mine for the quarter ended March 31, 2019 (Q3 of the Company's 2019 financial year) reported that it had treated 862,838 tonnes of ore in the quarter as compared to 884,252 tonnes treated in the previous quarter (Q2 FY 2019). The tonnes of ore treated in the period under review was “marginally lower”, the Company said, “due to unforeseen plant equipment failures during early January”, which matter was reported earlier as well.   

In Q3 FY 2019 the Company also realised a lower average grade – of 18.0 carats per hundred tonnes (cpht) as against 25.4 cpht in Q2. This was mainly due to ore from the lower grade northern part of the pit being mined and treated. The total volume of diamonds recovered also dipped and amounted to 155,206 carats compared to the recovery of 224,947 carats in the previous quarter.

Operating cost during the quarter amounted to US$ 11.55 per tonne treated, Firestone said, as against Q2 operating costs of US$ 12.00 per tonne treated. This, the Company noted was “substantially lower than FY2019 guidance of US$ 15-16per tonne treated”.

Firestone sold a total of 211,368 carats in Q3 FY 2019, higher than 191,735 carats sold in the previous quarter. The Company also realised a higher revenue – of US$ 16.8 million as compared to US$ 13.9 million in Q2 FY 2019. The Company reported a growth in average value which amounted to US$ 80 per carat in Q3FY 2019 as compared to US$ 72 per carat achieved in Q2FY 2019. 

Firestone also noted that there were signs of recovery in prices realised for the smaller, lower value goods.

“The mine continued to generate positive cash flows after finance costs; with net cash as at 31 March 2019 of US$ 29.9 million (Q2: US$ 26.2 million),” Firestone said, adding that it was on track to achieve its guidance of 4.3 million tonnes and 4.8 million tonnes for FY2019.

Amongst some of the highlights Firestone reported that Liqhobong's most valuable stone recovered to date, a 70 carat white diamond was sold in March. Further, the Company said, a number of other high value stones were also sold during the quarter including a 46 carat white diamond.

Post the quarter Firestone made some significant recoveries – that of a 72 carat yellow, makeable diamond; a 22 carat makeable white diamond; and an 11 carat fancy light-pink diamond. All of these will go on sale at the upcoming tender in early May.

Paul Bosma, Chief Executive Officer, commented: "We spent most of the third quarter mining in the lower grade northern part of the pit and it was pleasing to see an increase in average diamond value which resulted in improved revenue for the quarter. Besides continued strong demand for our special stones it was also encouraging to see a modest increase in pricing for the smaller, lower value goods at the March sale.”

He added: “During the final quarter of the year, mining will return to the higher grade, southern part of the pit. Waste stripping is accelerating according to plan and we achieved our highest ever monthly tonnes moved in March.”