Firestone Diamonds FY 2014 net loss narrows to $11.2 million

Firestone Diamonds said its net loss for the financial year ended 30 June 2014 narrowed to $11.2 million from $22.6 million, a year earlier.
“I am pleased to report that we contained our losses,” said company non-executive chairperson Lucio Genovese. He said the past year had seen some “very exciting” developments for Firestone, which now has the required management and financing in place to realise its strategy of becoming a mid-tier, plus 1 million carat per year diamond producer.
Despite the challenging environment for junior mining companies seeking finance, Firestone said it managed to complete its $222.4 million funding package which was required for the construction and commissioning of the Liqhobong Mine Development Project in Lesotho and other working capital requirements of the group.
It recorded a net amount of $114.5 million from equity funding in two separate raises. The diamond junior, which has operations in Lesotho and currently in the process of disposing of its Botswana assets, said that its cash on hand at year-end was $107 million up from $4.1 million during the same period last year.
Meanwhile, Genovese said due to the continued operating losses from the pilot plant and the potential to break large valuable stones, the company decided to close the pilot plant at Liqhobong and ceased production in October 2013.
“While this decision was extremely difficult to make, it was necessary from both a financial and operational perspective to allow site preparation to begin for the construction of the Liqhobong Mine Development Project in 2014,” he said.
"Following completion of the project financing in May 2014, Firestone commenced its development programme to build and commission the Liqhobong Mine Development Project.”
The Liqhobong Mine Development Project started as planned in late June 2014 with the commencement of the decommissioning and removal of the existing pilot plant, the beginning of general site earthworks and with overhead power line contractors working hard establishing site works and logistics.
On Botswana assets, Genovese said, the company which commenced a formal disposal process in August was hoping to conclude the exercise in 2015.
“[This will allow] the management team to completely focus their attention on the successful completion of the Liqhobong Mine Development Project," he said.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished