Firestone Diamonds full year losses narrow despite sales fall
Diamond exploration and mining firm Firestone Diamonds cut back its full-year loss, despite a fall in revenue due to the closure of its plant in Lesotho.
Firestone Diamonds
0.20p
16:35 25/03/20
The miner reported a pre-tax loss of $11.2m in the year ended 30 June, almost halving the $22.6m loss it reported at the end of the 2013 financial year. This was due to a reduction in administrative, maintenance and depreciation costs and to the lack of impairment losses.
The closure of the group's pilot plant at Liqhobong in Lesotho in October 2013 saw revenue fell from $15.4m to $3.9m.
However, the closure of the plant, which had operated at a loss, allowed Firestone to reduce its cost and begin preparation for the construction of the Liqhobong Mine Development, the company said in a statement.
The project, which is fully funded through to completion, is expected to be ultimately completed within 2016 and the firm estimated it would produce over 1m carats of diamonds per year.
"The past year has seen some very exciting developments for Firestone culminating in the company now having the required management and financing in place to realise its strategy of becoming a mid-tier, plus 1m carat per year diamond producer," said group chairman Lucio Genovese.
Firestone shares were up 0.34% to 36.38p at 16:17 on Thursday.