Storonoway Diamond Releases 2018 Financials

Canadian gem miner Storonoway Diamond (TSX:SWY) has release its full year and fourth quarter results for 2018.

As quoted in the press release:

QUARTER AND YEAR ENDED DECEMBER 31, 2018 HIGHLIGHTS:

• For the year ended December 31, 2018, Stornoway reported Net loss C$329.4 million ($ (C0.39) per share on a basic and fully diluted basis), compared to Net loss of C$114.2 million in 2017 (C$(0.14) per share basic and fully diluted). Included in 2018 results is (i) a non‐cash impairment charge of C$83.2 million, (ii) a deferred income tax expense of $77.4 million and (iii) costs of goods sold of $227.1 million, $58.1 million of which is a write-down on inventory to bring it to its net realizable value, all reflecting lower diamond price environment than was originally forecasted by the Corporation. Adjusted Net Loss¹ for the fourth quarter was C$28.6 million and C$133.8 million for the year.
• Mining in the Renard 65 open pit in the fourth quarter comprised 581,763 tonnes, with 102,333 tonnes of ore extracted. For the full year, mining in the Renard 2-3 and Renard 65 open pits stood at 2,265,895 tonnes, with 623,065 tonnes of ore extracted.
• A total of 485,616 carats were recovered in the fourth quarter from the processing of 605,960 tonnes of ore at a grade of 80 carats per hundred tonnes (“cpht”). For the full year, a total of 1,324,123 carats were recovered from 2,328,300 tonnes of ore at 57 cpht.

Patrick Godin, President and CEO, commented: “2018, the second year of commercial production for Stornoway’s Renard Diamond Mine, was one of transition from open pit mining to primarily underground production. This transition proved to be challenging, but our team overcame the difficulties we faced, safely and successfully completing the ramp up of the underground mine in August…”

Click here to read the full announcement