Canada: 37 ct. Diamond Increases Stornoway Prices

Canada: 37 ct. Diamond Increases Stornoway Prices

Stornoway Diamond Corporation saw a sharp rise in prices in the first quarter, due to a resurgent market and the sale of its most expensive stone to date.

The miner achieved an average price of $ 112 per carat for the three-month period ending March 31 and sold 399,135 carats for a total of $ 44.8 million ($ 56.4 million Canadian). A 37-carat, Type IIa, D-colored, internally flawless stone, collected $ 1.3 million, or $ 36,000 per carat - the highest price for a diamond from its Renard mine, in Quebec.

"The first quarter posted strong sales and price performance for Stornoway, with prices rising steadily for each of our three sales, reflecting improved mix of size and quality and a good start to the year. year for the diamond market, "said CEO Matt Manson. "The quarter also saw the sale of our highest value stone to date. "

While this year's average price has increased from the $ 85 per carat earned in 2017, Stornoway is still meeting its target of $ 125 to $ 165 per carat in 2018.

Stornoway's production of 285,851 carats for the quarter was below expectations as the company processed lower grade ores from open pit to underground mining. It expects this change to be completed by the end of the second quarter.

In 2017, the Canadian company recorded a loss of $ 88.8 million (C $ 114.6 million) after being forced to devalue Renard and, as a result, an impairment loss of $ 132.6 million ( 171 million Canadian dollars). The decline in asset value was due to poor quality stone production.

At the end of the first quarter, Stornoway found a 189-carat stone - its largest to date - from Renard. Although the stone is of relatively low quality, it is one of the largest diamonds ever recovered in Canada.