Southern Africa-focused DiamondCorp posts a pre-tax loss of £0.247 million for the six months to the end of June compared with a loss of £3.159 million a year ago, after adjustments for a stronger rand exchange rate.
Administrative expenditure for the period increased to £0.893 million (£0.672 million in 2015). The increase is primarily due to a timing change on audit remuneration, as well as additional administrative expenses as the company is moving from development into production.
Total assets at 30 June were £39.227 million (£32.719 million in 2015) and liabilities were £28.456 million (£25.219 million in 2015).
Cash at 30 June was £0.108 million. After the period end, a further £2.0 million was raised through a share issue.
The company said its diamond sales schedule has been reorganised to maximise attendance by clients who have been absent from Antwerp during various religious holidays as well as the De Beers August sale.
The first tender will now be concluded on 17 September with results announced on 20 September. Subsequent monthly sales will be concluded around the middle of each month.
The group said production from the first mining block on the 310m level at the Lace mine was impacted during August by a number of operational issues, discussed below, all of which have now been overcome.
The diamonds yielded during August remain of a high quality, and four stones larger than 10 carats were recovered, including a 12.7 carat gem diamond. These diamonds will be sold in the October sale.
It said that in light of the ramp-up problems encountered to date, which management considers essentially resolved, the production forecast for the remainder of 2016 has been re-budgeted for 20,000 tonnes in September, 25,000 tonnes in October and 30,000 tonnes in each of November and December.
The company's current diamond inventory is 7,003 carats. It takes between 30 and 45 days for diamonds recovered to move from the mine to Antwerp and be sold. As a consequence, the October sale will be relatively small but monthly sales are expected to build up to the 9,000 carat base case in the budget by December.
At 1:26pm: (LON:DCP) Diamondcorp PLC share price was -1.13p at 5.63p