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Firestone looks to recover lost revenue

Firestone Diamonds has announced that stable grid power has been restored at its Liqhobong Diamond Mine in Lesotho.

Further to the announcements on 15 and 23 October 2019 and on 1 November, the Lesotho Electricity Company’s Muela Hydropower Station was brought back into operation on 1 December following a two month shut down period for maintenance work.

As a consequence, stable grid power was restored to the Liqhobong Mine, enabling the processing plant to operate once again at full capacity.

The power interruption occurred from 1 October and the processing plant resumed production on 26 October when diesel generators were commissioned, which provided sufficient power for the plant to operate at between 80% and 90% capacity.

Additional costs associated with operating the rented diesel generators during this period were approximately US$1.1 million and an insurance claim in respect of the loss of profit and the additional operating costs is in the process of being compiled.

At the end of November, the Group had a cash balance of US$17.0 million, of which US$9.3 was unrestricted.