Stornoway Diamond Reports Quarterly Results

Stornoway Diamond Corp. (TSX:SWY) released its results for the quarter ended October 31, 2015. According to the release, progress at the company’s Renard diamond project remains on schedule and within budget.
Other quarterly highlights include:

• Incurred costs and commitments at the quarter-end totaled $472.0 million, or 58% of budget.
• Construction progress stood at 53% compared to a plan of 49%, with detailed engineering substantially complete.
• On site manpower during the month of October averaged 432 workers, of which 22% were Crees of the Eeyou Istchee.
• Mining in the Renard 2-3 and Renard 65 open pits stood at 4,819,672 million tonnes, or 92% of plan, and underground mining development stood at 837 meters, or 91% of plan.
• At the end of the quarter construction of the project’s major facilities was well advanced, with the maintenance facility fully completed and commissioned and the process and power plant buildings fully enclosed prior to the onset of winter weather.
• During the quarter total project Indicated Mineral Resources were increased 11% to 30.2 million carats, including a 16% increase in Indicated Mineral Resources at Renard 2 to 21.6 million carats. New Inferred Mineral Resources at Renard 2 were defined to 850 meters depth.
• For the quarter-end, the Corporation reported net earnings of $10.3 million or $0.01 per share basic and fully diluted.
• Cash, cash equivalents and short-term investments stood at $290.3 million¹. On September 30 the drawdown of the second US$80m tranche of diamond stream funding from Orion Mine Finance, Caisse de dépôt et placement du Québec and Blackstone Tactical 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 $100 million, assuming the satisfaction of all covenants and conditions precedent relating to future funding commitments and a CAD$:US$ conversion rate of $1.25.

Matt Manson, president and CEO of Stornoway, commented:

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 C$811 million capital budget. For another quarter, a significant foreign exchange gain on our current and committed US 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.

Click here to read the full Stornoway Diamond Corp. (TSX:SWY) press release.