Stornoway Announces First Quarter Results for 2016

Stornoway Diamond (TSX:SWY) has announced its results for the quarter ending March 31, 2016.
As quoted in the press release:

Quarter ended March 31, 2016 Highlights
(All quoted figures in CAD$)

• Progress at the Renard Diamond Project continues in line with the planned schedule and budget.
• Incurred costs and commitments at quarter-end totalled $615.3 million, or 79% of budget.
• Construction progress stood at 83.4% compared to the (re-baselined) plan of 77.6% at the end of the quarter, and at 92.1% compared to 84.1% at the end of April.
• On site manpower during the month of March averaged 522 workers, of which 14.8% were Crees of the Eeyou Istchee.
• Mining in the Renard 2-3 and Renard 65 open pits stood at 7,504,923 tonnes, or 102% of plan, with 194,416 tonnes of ore stockpiled. Underground mine development stood at 1,218 meters, or 74% of plan.
• During the quarter the project’s liquefied natural gas (“LNG”) power plant was completed and fully commissioned and all principal crushing and diamond recovery equipment for the process plant was received and installed. At quarter-end project construction was focused on mechanical, piping, electrical and instrumentation installation in the process plant, primary crusher, water treatment facility and processed kimberlite load-out.
• For the three-month period ended March 31, 2016, the Corporation reported a net loss of $22.6 million or $0.03 per share basic and $0.03 per share fully diluted.
• Cash, cash equivalents and short-term investments stood at $219.1 million. On March 30 the drawdown of the third and final US$90m tranche of diamond stream funding from Orion Mine Finance, Caisse de dépôt et placement du Québec and BlackstoneTactical Opportunities occurred as planned. Excess financing capacity available to complete the project, comprising surplus cash and available cost-overrun facilities, is now forecast to be $116 million, assuming the satisfaction of all covenants and conditions precedent relating to future funding commitments and a CAD$:US$ conversion rate of $1.25.

Matt Manson, president and CEO, said:

Construction at Renard during, and subsequent to, the first quarter has continued to exceeded expectations. Progress in March and April alone was an impressive 9.4% and 8.7% respectively. This puts us well within the already re-baselined schedule for first ore processing by the end of September. With final equipping of the process plant proceeding well, our critical path activity has become mining and the supply of ore on a schedule commensurate with the earlier than expected plant availability. To this end, our open pit mining is tracking to plan and challenges in the development of the ramp in December and February appear now to have been overcome. With market reports indicating a strengthening in rough diamond prices  and our project execution continuing well, our outlook for project completion and first diamond production later this year is positive.

Click here for the full press release.