Diamond Recoveries Up 34% At Firestone, But Market Unfavorable

Firestone Diamonds announced Thursday that it recovered 208,572 carats in Q4, up 34% from its Q3.

However, the diamond market is not great, warned Paul Bosma, chief executive officer.

“From a market and pricing perspective, it was a tough financial year, particularly for the smaller, lower value goods and these conditions are expected to persist for the rest of 2019 and possibly improving during 2020 when global rough supply is expected to reduce,” said Bosma.

Looking at full year, total recoveries were 829,458 bringing the company within its guidance of between 820,000 and 870,000 carats. Operating costs were $11.49 per tonne, lower than the $15.00 to $16.00 range the company previously forecast.

Firestone is maintaining the same recovery guidance for 2020 fiscal year. Expected operating costs have been reduced between $13.50 and $14.50 per tonne.

The company is currently negotiation with debt holders “…to ensure it can sustain operations through the current downturn and to be well positioned to benefit when the global supply-demand dynamics improve.”

Source: kitco.com