Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Stellar Diamonds rises on Sierra Leone licence update

The National Minerals Agency has received the application
Stellar Diamonds rises on Sierra Leone licence update
Stellar is looking at a phased development of an open pit and subsequent underground mine

Stellar Diamonds’ (LON:STEL) mining licence application for the Tongo Dyke-1 diamond project in Sierra Leone is making good progress, it said today.

The National Minerals Agency has received the application and is considering it, while public disclosure meetings have been held over the environmental licence application.

Karl Smithson, chief executive, said while it is waiting for licence approval it is considering appropriate funding structures for the future commercial development.

Stellar is looking at a phased development of an open pit and subsequent underground mine. 

“This phased development model will not only create significant local employment opportunities but also support early cash flow generation and a long-term sustainable operation,” said Smithson.

A preliminary economic assessment indicated an initial 4 year open pit mining project would cost $24.8mln and produce around 118,000 carats of diamonds valued at $270/ct.

That would generate a pre-tax NPV of $53.2mln at a 10% discount rate and a pre-tax internal rate of return of 31%.

SP Angel said that Stellar Diamonds is at an important point in its development and efforts to engage with communities and other stakeholders should help build support for the project.

Shares rose 9% to 10.4p.

View full STEL profile View Profile

Stellar Diamonds PLC Timeline

Related Articles

Bag of diamonds
July 06 2018
In a production update, the AIM-listed diamond miner said production in the first half of the year was up 81% year-on-year at 73,028 tonnes
Richland
April 03 2018
The strategic review aims to assess how the company can best leverage its position as the owner of one of the world's largest sapphire mines.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use