Stornoway Diamond Corporation announced earnings and operating results for the second quarter and six months ended June 30, 2018. For the quarter, the company reported revenues of CAD 56.9 million as compared to CAD 42.6 million for the same period last year. Net loss was CAD 35.9 million as compared to income of CAD 3.1 million for the same period last year. Basic and diluted net loss per share was CAD 0.04 against nil for the same period a year ago. Adjusted net loss was CAD 31.3 million as compared to CAD 5.0 for the same period last year. Adjusted LBITDA was CAD 6.4 million as compared to CAD 16.8 million for the same period last year. Capital expenditures were CAD 19.9 million as compared to CAD 28.8 million for the same period last year.

For the six months, the company reported revenues of CAD 112.9 million as compared to CAD 91.0 million for the same period last year. Net loss was CAD 46.8 million as compared to income of CAD 1.9 million for the same period last year. Basic and diluted net loss per share was CAD 0.06 against nil for the same period a year ago. Adjusted net loss was CAD 45.2 million as compared to CAD 7.5 million for the same period last year. Adjusted EBITDA was CAD 1.0 million as compared to CAD 38.1 million for the same period last year. Capital expenditures were CAD 51.0 million as compared to CAD 48.1 million for the same period last year.

For the second quarter, the company mined Open pit of 613,683 tonnes as compared to 1,328,580 tonnes for the same period last year. Underground ore mined were 296,637 tonnes as compared to 22,174 tonnes for the same period last year. Ore processed were 562,060 tonnes as compared to 512,005 tonnes for the same period last year. Carat recovered were 223,351 tonnes as compared to 417,362 tonnes for the same period last year.

For the six months, the company mined Open pit of 1,038,606 tonnes as compared to 2,574,525 tonnes for the same period last year. Underground ore mined were 413,435 tonnes as compared to 36,568 tonnes for the same period last year. Ore processed were 1,124,580 tonnes as compared to 931,238 tonnes for the same period last year. Carat recovered were 509,202 tonnes as compared to 802,513 tonnes for the same period last year.

The company expects capital expenditures to trend down in the second half of the year as it primarily relates to the underground development and down to the 470 meter level.