Industry News by Nemesis

Stornoway’s 2Q Profit -12% with Renard on Track

December 13, 2015

Canadian exploration and development company Stornoway Diamond Corporation reported a 12 percent fall in net profit to $7.5 million (CAD 10.3 million), in the second quarter that ended October 31, 2015, compared with the same period last year. 

Progress at the Renard Diamond Project is continuing, with first ore scheduled to be delivered to the plant in the second half of 2016 and commercial production set for the second quarter of 2017, in line with earlier forecasts.

Profit was impacted by several items not reflective of Stornoway’s underlying operating performance, including changes in the fair value of a derivative and unrealized gains and losses from foreign exchange, according to a statement December 9.

“At the half way point in the construction of the Renard Diamond Project, we are pleased to report continued construction progress on or ahead of planned schedule and a forecast cost to complete within our fully funded CAD 811 million capital budget,” said Matt Manson, Stornoway’s president and chief executive officer.

“For another quarter, a significant foreign exchange gain on our current and committed U.S. dollar funds is serving to strengthen our cash position as we look forward to plant commissioning and project ramp up starting late next year. We end 2015 with a record of steady progress against plan, and a stronger financial position than expected.”


Source: Rapaport

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