Firestone Diamonds (LON:FDI) said today a reduction in losses in its second half was a clear indication its strategy to focus on the Liqhobong mine was working.
Cash losses were £8.8 million in the year to June, of which £4 million was incurred during the second half.
Firestone is running a pilot processing plant at Liqhobong in Lesotho, which it says has now reached full operating capacity of 100 tonnes per hour and an annual production of around 200,000 carats.
In October, the company published a definitive feasibility study for a new treatment plant at Liqhobong to increase annual production to 1.2 mln carats over a 15-year mine life.
Total losses for the year to June were £30.4 mln, the majority of which related to the now mothballed BK11 mine. Firestone said it does not expect further losses from BK11.
A total of 139,556 carats were sold during the year generating revenues of US$8.2 mln.
Chairman Lucio Genovese said the company remained committed to improve further the results of the Pilot Plant at Liqhobong and through further cost saving initiatives at a corporate level.
“We remain highly focused in our mission to become a 1 million carat per annum producer and very much look forward to commencing the transformation process of Liqhobong from a Pilot Plant operation to a significant diamond producer.”
Cash equivalents at the year end were £10.6 mln.