Firestone Diamonds plc, in its update for the quarter ended 31 December 2017 (Q2 of the Company's 2018 financial year) on operations at its Liqhobong Diamond Mine in Lesotho  said the period had witnessed a “solid operational performance”.

The Company recovered a total 180,709 carats, a figure which was slightly below the recovery for the previous quarter. The year-to-date (YTD) production from Liqhobong stands at a total of 379,716 carats.

“During the quarter, 80 special stones (plus 10.8 carats) were recovered (Q1: 45) which was pleasing although overall, the average quality remained somewhat below expectation,” Firestone noted.

The overall grade for Q2 2018 is 18.8 carats per hundred tonnes (cpht), while for YTD it stands at 20.0 cpht.

Firestone indicated that it had reduced the cost of production to US$ 11.60 per tonne treated “despite adverse exchange rate movements”.

The Company realised US$ 12.5 million from the sale of a total of 156,942 carats in the quarter, achieving an average per carat price of US$ 80. In the previous quarter, the average price per carat realised was US$ 69.

“Cash available at the quarter end was US$ 29.7 million (Q1 quarter end: US$ 4.3 million), reflecting the successful capital raise of US$25 million that was completed at the end of December,” the Company reported.  “Cash on hand at period end was before the final loan repayment of US$6.0 million ahead of the 18 month repayment holiday period during which only interest is required to be serviced.”

Stuart Brown, Chief Executive Officer, commented: "Mine production for the quarter has been very solid, with yet another quarter-on-quarter increase in tonnes treated since the mine was commissioned.  The average value per carat achieved improved on the previous quarter, while the sale held in December was stronger than the first sale earlier in the period. There is cautious optimism on diamond pricing in 2018 after positive initial year-end retail numbers out of the US and China.”

He added: "Despite the recovery of fewer carats in the period, grades are expected to improve in the second half as mining moves to higher grade areas of the pit."