StockMarketWire.com - Firestone Diamonds' net losses narrowed in the year to the end of June and the Liqhobong mine remains on track for initial production in the fourth quarter of 2016.

Liqhobong is owned 75% by Firestone with the government of Lesotho holding the remaining 25%. At full production, Liqhobong will produce one million carats per annum, which would place it in the mid-tier of diamond mines globally.

Highlights:

Liqhobong

· On budget of US$184.5 million and Project completion at 49% as of 30 September 2015;

· Earthworks nearing completion and civil and plant construction commenced;

· 892,318 zero Lost Time Injury hours recorded during the year; and

· Project on schedule for completion in Q4 2016 and fully funded through to production ramp up.

Financial:

· Capital investment of US$82.9 million in Liqhobong during the year;

· Group net loss decreased to US$10.4 million (2014: US$11.2 million loss);

· Eurobond debt facility of US$30.0 million available to the Group;

· ABSA Project Debt Facility of US$82.4 million available to the Project; and

· Standby facility of US$15.0 million available to the Project.

Resteructuring:

· Conditional agreement entered into for the disposal of the Groups Botswana assets for US$8.0 million; and

· Sale of South African alluvial assets concluded for US$0.2 million.

Outlook:

· Focused on completing the Project, within budget, by Q4 2016; and

· Becoming a one million carats per annum producer.








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