Releasing its financial and operational results for the three-month period ended September 30, 2018, Stornoway Diamond Corporation the ramp up of underground mine production at its Renard pit was beginning to yield positive results, with grade and carat recoveries improving q-on-q by 39% and 47% respectively.

The Company reported a net loss of C$ 37.6 million and said it had a recognised revenue of C$ 29.4 mn during the quarter, which included C$ 24.8 realised from two tender sales totalling 184,620 carats at an average price of US$ 103 per carat (C$ 134 per carat) and the sale of 21,367 carats of incidental production in one out of tender contract sale at an average price of US$ 13 per carat (C$ 17 per carat).

Stornoway also said that third quarter diamond production was 329,306 carats produced from the processing of 597,761 tonnes of ore at an average grade of 55 carats per hundred tonnes (cpht) representing an improvement of 39% and 47% respectively over the comparative figures for Q2.

Maintaining that carats produced and carats sold in 2018 are expected to be within the low end of range of the 2018 revised guidance (Carats recovered: 1.35 to 1.40 million; Carats sold: 1.20 to 1.25 million) due to lower tonnes at higher average grades, Stornoway added that average diamond pricing achieved is expected to be within guidance.

The new ore-sorting circuit at Renard became fully operational during the quarter. As a result, diamond recoveries have exhibited lower levels of breakage than observed previously with comparable feed composition, and overall diamond liberation from ore has been improved, Stornoway reported.

Subsequent to the quarter end, the corporation completed a series of financing transactions with lenders and key stakeholders that represent additional consideration and liquidity to the corporation of up to C$ 129 million.

Matt Manson, President and CEO, commented: “Our third quarter financial results reflect the sale in July and September of diamonds recovered between April and June, when the underground mine was ramping up with low grade ore. Since attaining full design capacity in the underground mine in late August, we have achieved our best two months of the year in terms of diamond production, with 130,000 carats recovered in September at a grade of 64 cpht and then, subsequent to the quarter end, 161,000 carats in October at a grade of 74 cpht.”

Noting that there was continued weakness in the diamond market, particularly in smaller and lower quality items, Manson added that the Renard mine was now meeting or exceeding expectations in terms of tonnes mined, tonnes processed and carat recoveries. “We expect to come in within our revised 2018 guidance for carats produced and carats sold, albeit at the lower end of our range based on lower tonnes at a higher average grade,” Manson stated.

In a separate announcement, Stornoway said that, effective January 1, 2019, Matt Manson will step down as President and CEO of the Corporation and will be succeeded by Patrick Godin, who has been the Corporation’s Chief Operating Officer since 2010.

Ebe Sherkus, the chairman of the Stornoway Board of Directors, commented: “We would like to thank Matt for his service to Stornoway. Starting in 2005, Matt has been the driving force behind the successful acquisition, financing and development of the Renard Diamond Mine. His determination and energy have been the key ingredients in the Corporation’s transition from junior explorer to mine developer and operator. He will be ably succeeded by Pat who, as COO and a director of the Corporation, has been responsible for the construction and development of both the open pit and underground mining operations at Renard and developing the Corporation’s positive relationships with employees, regulators, communities and stakeholders.”