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Diamond Recoveries Up 34% At Firestone, But Market Unfavorable

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(Kitco News) - Firestone Diamonds (LSE:FDI) announced Thursday that it recovered 208,572 carats in Q4, up 34% from its Q3.

However, the diamond market is not great, warned Paul Bosma, chief executive officer.

"From a market and pricing perspective, it was a tough financial year, particularly for the smaller, lower value goods and these conditions are expected to persist for the rest of 2019 and possibly improving during 2020 when global rough supply is expected to reduce," said Bosma.

Looking at full year, total recoveries were 829,458 bringing the company within its guidance of between 820,000 and 870,000 carats. Operating costs were $11.49 per tonne, lower than the $15.00 to $16.00 range the company previously forecast.

Firestone is maintaining the same recovery guidance for 2020 fiscal year. Expected operating costs have been reduced between $13.50 and $14.50 per tonne.

The company is currently negotiation with debt holders "...to ensure it can sustain operations through the current downturn and to be well positioned to benefit when the global supply-demand dynamics improve."

Firestone shares are trading at GBX1.28. The 52-week range is GBX5.80 to GBX1.25. 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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