Shares in Diamondcorp Plc (LON:DCP) have been suspended after its Lace mine in South Africa was flooded by heavy rainfall following two storms.
The company said that more than 90 mm of rain fell in the space of an hour at Lace, equating to almost one third of the mine’s annual rainfall.
All personnel were successful evacuated, but pumping systems were overwhelmed, and an estimated 10,000 cubic metres of rain entered the mine via the open pit and access ramps.
Diamondcorp reckons that this will take at least a week to clear, assuming there’s no more rain. More importantly, the long-hole drill rig, which was operating at the time, will need to be reassembled and its electrics rebuilt. This could take up to twelve weeks.
Given that Diamondcorp’s financial position was already under pressure prior to these storms, the shares have now been suspended. Talks with a business rescue practitioner in South Africa are now underway.