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News Article | May 23, 2017
Site: globenewswire.com

Construction on-time & on-budget · 4 million man-hours achieved without an LTI · SAG Mill installation has commenced  · Gold pour expected as forecast during Q4-2017   Endeavour Mining Corporation (TSX:EDV)(OTCQX:EDVMF) is pleased to announce that excellent progress is being made at its Houndé Gold Project in Burkina Faso, having achieved a major milestone with the Sag Mill components, which are the longest lead items, already on site and installation underway. Construction is progressing on-time with over 85% of the total project complete and on-budget, with the first gold pour expected during the fourth quarter of 2017. Sébastien de Montessus, President & CEO, stated: "I would like to thank the team for their continued hard work and dedication which is allowing Houndé construction to remain on-budget and on-time for a first gold pour in the fourth quarter. Most importantly, I would like to congratulate them for posting 4 million hours without a lost time injury (LTI) - continuing to build on their track record at Agbaou, which was also built without an LTI incident. Following a two year period without drilling, we are also excited to have restarted exploration activities to focus on delineating high-grade targets, with results expected to be published in the second half of the year." Once in production, Endeavour's 90%-owned Houndé Project will become the Company's flagship low-cost mine, ranking amongst West Africa's top tier cash generating mines, with an average annual production of 190,000 ounces at an All-In Sustaining Cost ("AISC") of US$709/oz over an initial 10-year mine life based on reserves. In its first 4 years, the average annual production is expected to be 235,000 ounces at an AISC of US$610/oz.[1] The project is an open pit mine with a 3.0Mtpa gravity circuit / Carbon-In-Leach plant. The initial capital cost is estimated at $328 million, inclusive of $46 million for the owner-mining fleet. Construction began in April 2016 and is progressing on-time and on-budget with the first gold pour expected during the fourth quarter of 2017. Endeavour will employ up to 1,800 people during Houndé's construction phase and 470 once the project reaches commercial production, with an objective of employing 90% Burkinabe nationals and a focus on increasing female employment in the region. Endeavour Mining is a TSX-listed intermediate gold producer, focused on developing a portfolio of high quality mines in the prolific West-African region, where it has established a solid operational and construction track record. Endeavour is ideally positioned as the major pure West-African multi-operation gold mining company, operating 5 mines in Côte d'Ivoire (Agbaou and Ity), Burkina Faso (Karma), Mali (Tabakoto), and Ghana (Nzema). In 2017, it expects to produce between 600koz and 640koz at an AISC of US$860 to US$905/oz. Endeavour is currently building its Houndé project in Burkina Faso, which is expected to commence production in Q4-2017 and to become its flagship low-cost mine with an average annual production of 190koz at an AISC of US$709/oz over an initial 10-year mine life based on reserves. The development of the Houndé project is expected to lift Endeavour's group production +900kozpa and decrease its average AISC to circa $800/oz by 2018, while exploration aims to extend all mine lives to +10 years. [1]As announced in Endeavour's April 11, 2016, news release entitled "Endeavour starts construction of its Houndé Project, its next low-cost gold mine" available on the Company's website and on Sedar. View News Release in PDF Format View Sag shell in place View Sag mil shell lower half View ROM Pad, TSF and Plant View Control Cable Installation & Termination at Pa Sub Station View Vindaloo pit View Resettlement of village View Houndé Drilling targets


News Article | May 23, 2017
Site: globenewswire.com

Construction on-time & on-budget · 4 million man-hours achieved without an LTI · SAG Mill installation has commenced  · Gold pour expected as forecast during Q4-2017   Endeavour Mining Corporation (TSX:EDV)(OTCQX:EDVMF) is pleased to announce that excellent progress is being made at its Houndé Gold Project in Burkina Faso, having achieved a major milestone with the Sag Mill components, which are the longest lead items, already on site and installation underway. Construction is progressing on-time with over 85% of the total project complete and on-budget, with the first gold pour expected during the fourth quarter of 2017. Sébastien de Montessus, President & CEO, stated: "I would like to thank the team for their continued hard work and dedication which is allowing Houndé construction to remain on-budget and on-time for a first gold pour in the fourth quarter. Most importantly, I would like to congratulate them for posting 4 million hours without a lost time injury (LTI) - continuing to build on their track record at Agbaou, which was also built without an LTI incident. Following a two year period without drilling, we are also excited to have restarted exploration activities to focus on delineating high-grade targets, with results expected to be published in the second half of the year." Once in production, Endeavour's 90%-owned Houndé Project will become the Company's flagship low-cost mine, ranking amongst West Africa's top tier cash generating mines, with an average annual production of 190,000 ounces at an All-In Sustaining Cost ("AISC") of US$709/oz over an initial 10-year mine life based on reserves. In its first 4 years, the average annual production is expected to be 235,000 ounces at an AISC of US$610/oz.[1] The project is an open pit mine with a 3.0Mtpa gravity circuit / Carbon-In-Leach plant. The initial capital cost is estimated at $328 million, inclusive of $46 million for the owner-mining fleet. Construction began in April 2016 and is progressing on-time and on-budget with the first gold pour expected during the fourth quarter of 2017. Endeavour will employ up to 1,800 people during Houndé's construction phase and 470 once the project reaches commercial production, with an objective of employing 90% Burkinabe nationals and a focus on increasing female employment in the region. Endeavour Mining is a TSX-listed intermediate gold producer, focused on developing a portfolio of high quality mines in the prolific West-African region, where it has established a solid operational and construction track record. Endeavour is ideally positioned as the major pure West-African multi-operation gold mining company, operating 5 mines in Côte d'Ivoire (Agbaou and Ity), Burkina Faso (Karma), Mali (Tabakoto), and Ghana (Nzema). In 2017, it expects to produce between 600koz and 640koz at an AISC of US$860 to US$905/oz. Endeavour is currently building its Houndé project in Burkina Faso, which is expected to commence production in Q4-2017 and to become its flagship low-cost mine with an average annual production of 190koz at an AISC of US$709/oz over an initial 10-year mine life based on reserves. The development of the Houndé project is expected to lift Endeavour's group production +900kozpa and decrease its average AISC to circa $800/oz by 2018, while exploration aims to extend all mine lives to +10 years. [1]As announced in Endeavour's April 11, 2016, news release entitled "Endeavour starts construction of its Houndé Project, its next low-cost gold mine" available on the Company's website and on Sedar. View News Release in PDF Format View Sag shell in place View Sag mil shell lower half View ROM Pad, TSF and Plant View Control Cable Installation & Termination at Pa Sub Station View Vindaloo pit View Resettlement of village View Houndé Drilling targets


News Article | May 9, 2017
Site: www.prnewswire.com

"While our ST820 model offers the most functionality and performs the most comprehensive pipe handling tasks, we have now introduced the ST710 as a lower priced alternative. It runs on rig air and fits a smaller range of rig floor heights, but is also available in skid and towable versions. Most importantly, the ST710 improves service rig tubular handling efficiency and its' enhanced safety features reduce LTI's," said Tracie Reed, Drillform's VP of Business Development. "Drillform provides a family of service rig catwalk products, in skid and towable versions, to fit every customer's needs and budget." In addition to unveiling the new ST710, Drillform recently produced a dynamic video that showcases the features and benefits of the ST820 Service Rig Catwalk. Recognizing that it can be a challenge to fully envision functionality and design through pictures and spec sheets alone, the video presents a simulation of the ST820's automated functionality, increased safety features, and significant ROI. View the video here. Drillform's service rig catwalk family is a particularly excellent fit for rental companies who provide support and products for well service companies. Drillform is actively seeking field placement in a number of regions across North America and parties interested in learning more about our Strategic Partner Program can contact Drillform via email at info@drillform.com or phone at (403) 263-3133. Drillform Technical Services Ltd. is an ISO 9000 specialty drilling equipment designer and manufacturing company, established in 2010 and headquartered in Calgary, Alberta.  Drillform is an industry leader in automation, safety and reliability with a product suite that includes top drives, hydraulic pipe handling equipment and service rig catwalks. Drillform is a proud member of the CAODC, IADC, and AESC. More information about Drillform can be found at www.drillform.com.


News Article | May 9, 2017
Site: globenewswire.com

LONGUEUIL, Québec, May 09, 2017 (GLOBE NEWSWIRE) -- Stornoway Diamond Corporation (TSX:SWY) (the “Corporation” or “Stornoway”) announced today its results for the quarter ended March 31, 2017. 2 Based on an average C$: US$ conversion rate of $1.33. Matt Manson, President and CEO, commented: “This quarter represents the first full operating period for the Renard Mine. Mining rates, development progress in the underground mine, and carat production all continue to exceed plan. Mining costs and capital expenditures are tracking within budget. Achieved pricing in our first tender sales reflects the higher than normal levels of diamond breakage that we have been experiencing during the first months of processing ramp up. Pricing has also been impacted by a better than expected liberation of small diamonds and the market effects of Indian demonetization. Nevertheless, we are seeing positive trends in both the quality of our diamond production and in rough market pricing. We are particularly encouraged by the market’s reception for Quebec’s first diamond production. Yields of polished from the rough are reported as high, with good performance during manufacturing. Achieved pricing in the tender sales has been progressively higher compared to our reserve pricing as the market gains an understanding of the production, and tender participation has been strong. This trend has continued into the first sale of the second quarter, which was completed in April. As our production ramp-up continues, our focus remains the quality of our diamond recovery profile and the continued growth of our diamond sales.” Sales proceeds during the quarter totalled $48.5 million. This was the first quarter after the declaration of commercial production, and there were no sales in the comparable period. Sales include $6.8 million of deferred revenue relating to prior payments received by the Corporation under its streaming agreement. Total cost of sales were $36.4 million, with adjusted EBITDA1 of $15.0 million, or 35.9% of total sales. Net loss was $3.0 million, or $Nil per share and $0.01 loss per share fully diluted. Income during the quarter was impacted, amongst other things, by a gain in the fair value of an embedded derivative, interest charges relating to the company’s borrowings, and inventory variations relating to the accumulation of the project’s ore stockpile. Stornoway ended the quarter with cash, cash equivalents and short-term investments of $72.1 million, compared with $86.0 million at the end of the previous quarter. At quarter end, total financial liquidity, comprising cash and cash equivalents, receivables and available credit facilities stood at $153 million. One lost time incident (“LTI”) was recorded during the quarter, for a year to date LTI rate of 2.3 for contractors and zero for Stornoway employees. No incidents of environmental non-compliance were recorded during the quarter. Daily manpower at site in March averaged 272 workers, of which 19.5% were Crees of the Eeyou Istchee. Stornoway employees stood at 451 as at March 31, 2017, including 395 at the mine site, of which 14% were Crees, 25% were from Chibougamau and Chapais, and 61% were from outside the region. Commercial Production at the Renard Mine was officially declared on January 1, 2017, marking the end of the project’s initial capital expense period. During the first quarter 1,245,021 tonnes were mined from the Renard 2-3 and Renard 65 open pits, compared to a plan of 1,108,149 tonnes, with 625,576 tonnes of ore extracted. 419,233 tonnes of ore were processed with a diamond recovery of 385,151 carats at 92 cpht, compared to a plan of 406,000 tonnes and 369,307 carats at 91 cpht (increases of 3%, 4% and 1% respectively). Ore processed comprised primarily Renard 2 material, and was derived from both the working open pit and the ore stockpile. Processing rates during the quarter averaged 4,279 tonnes per day compared to a nameplate capacity of 6,000 tonnes per day as the project ramp-up continued. Elevated levels of diamond breakage in the process plant continues to influence the quality and size distribution of diamond recoveries. Mitigation activities are ongoing, and are focussed on achieving optimal crushing conditions in the Cone Crusher and High Pressure Grinding Roll, reducing the waste content in the ore-feed, and in minimizing re-circulation within the plant, particularly of free diamonds and waste. Initial progress has been encouraging. Development of the underground mine was 1,459 meters compared to a plan of 1,295 meters, and is now comfortably ahead of schedule. Development within ore at the 160 meters level is well advanced and ground conditions remain excellent. There has been no recurrence of the water inflow issues that affected ramp development in late 2015 and early 2016. Cash operating costs per tonne processed were $57.86 per tonne1 ($62.99 per carat) compared to a plan for the quarter of $60.14 per tonne ($66.12 per carat). Capital expenditures1 were $17.1 million, primarily related to the development of the underground mine. Stornoway sold a total of 459,126 carats during the quarter in 3 tender sales and 4 out-of-tender sales. All parcels of smaller and lower quality items that had been withdrawn from sale in the first Renard tender in November 2016 have now been sold, and the Corporation ended the quarter with no carried inventory other than normal mine production as goods in progress. Total sales recorded to the end of March 2017 have been 498,039 carats sold for proceeds of $54.5 million, or US$83 per carat ($110 per carat). These sales represent diamonds recovered between July 2016 and January 2017, during which the Corporation was experiencing high levels of diamond breakage in its process plant, and a higher recovery of small diamonds compared to plan. Realised prices in certain product categories were also impacted by the recent demonetization events in India. Pricing is expected to increase during the course of the year as breakage mitigation efforts continue and pricing for smaller and lower quality items recovers. Adjustments have also been made to the plant’s bottom screen cut-off to reduce the proportion of fines recovered, bringing it into compliance with the bottom size cut-off defined in the Mineral Resource and allowing higher future plant capacity. This will have the effect of reducing the proportion of small diamonds recovered, with a commensurate increase in average diamond pricing. Stornoway expects to achieve an annual average sales price in FY2017 of between US$100 and US$132 per carat, as per previous guidance. Stornoway expects to conduct two tender sales in the second quarter, three in the third, and two again in the fourth quarter. Exploration programs are ongoing on the Corporation’s 100% owned generative Canadian diamond projects, including the Adamantin property located approximately 100 km south of the Renard Diamond Project and 25 km west of the Route 167 Extension road.  Adamantin now comprises 28,171 hectares of claims in three blocks, following recent additional land acquisitions. Till sampling at Adamantin during 2015 confirmed the presence of indicator mineral anomalies interpreted to be sourced from undiscovered kimberlites with diamond potential, with one till sample having a diamond in the +0.25mm-0.50mm size fraction. Drilling during March and April of 2016 resulted in the discovery of 11 distinct kimberlite bodies, as announced on May 5, 2016. As announced September 1, 2016, no diamonds were recovered from these samples, leaving the source of the diamond in till unexplained. Further till sampling and geophysical surveys undertaken in 2016, have identified additional targets of interest. Drilling activities commenced before the end of the current quarter and were completed in April 2017. Two new kimberlites have been discovered and sampled for their potential diamond content. These results are not yet available. Stornoway will host a first quarter earnings conference call for analysts and investors on May 10, 2017 at 8:30am EST.  This call may be accessed by calling 1-844-215-3287 toll free in North America, of 1-209-905-5939 from international locations, with Conference ID 13010334. A live webcast of the call will be available at http://edge.media-server.com/m/p/5bzg2zeu. A replay of the call, and a copy of the earnings presentation, will be made available on the Stornoway website at www.stornowaydiamonds.com. This press release refers to certain financial measures, such as EBITDA, Adjusted EBITDA, Cash Operating Cost per Tonne Ore Processed, Capital Expenditures and Available Liquidity, which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. Please refer to the interim management and discussion analysis of the current quarter for more details about calculation of these financial measures in the “Non IFRS Financial Measures” section. “EBITDA” is the term the Corporation uses as an approximate measure of pre-tax operating cash flow and is generally used to better measure performance and evaluate trends of individual assets. EBITDA comprises earnings before deducting interest and other financial charges, income taxes and depreciation. “Adjusted EBITDA” is the calculation of EBITDA adjusted by all the non-cash items that are included in the EBITDA calculation. These items are share based compensation and the depreciation of deferred revenue. Also, exploration costs do not reflect the operating performance of the Corporation and are not indicative of future operating results. “Adjusted EBITDA Margin” is the calculation of Adjusted EBITDA divided by total revenues less amortization of deferred revenue from the Renard Stream. “Cash Operating Cost per Tonne Processed” is the term the Corporation uses to describe operating expenses (including inventory variation which includes depreciation) per tonne processed on a cash basis. This is calculated as cash operating cost divided by tonnes of ore processed for the period. This ratio provides the user with the total cash costs incurred by the mine during the period per tonne of ore processed, including mobilization costs. The most directly comparable measure calculated in accordance with IFRS is operating expenses. “Cash Operating Cost per Carats Recovered” is the total cash operating cost divided by carats recovered. “Capital Expenditure” is the term used to describe cash capital expenditure incurred.  This measure is consistent with that used in the $78.7M capital cost estimate previously provided as guidance for the fiscal year 2017. “Available Liquidity” comprises cash and cash equivalents, short-term investments and available credit facilities (less related upfront fees), net of payables and receivables. The Renard Diamond Mine is Quebec’s first producing diamond mine and Canada’s sixth. It is located approximately 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau in the James Bay region of north-central Québec. Construction on the project commenced on July 10, 2014, and commercial production was declared on January 1, 2017. Average annual diamond production is forecast at 1.8 million carats per annum over the first 10 years of mining. Readers are referred to the technical report dated January 11, 2016, in respect of the September 2015 Mineral Resource estimate, and the technical report dated March 30, 2016, in respect of the March 2016 Updated Mine Plan and Mineral Reserve Estimate for further details and assumptions relating to the project. Disclosure of a scientific or technical nature in this press release was prepared under the supervision of M. Patrick Godin, P.Eng. (Québec), Chief Operating Officer, and Mr. David Farrow, Pr.Sci.Nat (South Africa) and P.Geo. (BC), Vice President Diamonds. Stornoway’s exploration programs are supervised by Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration. Each of M. Godin, Mr. Farrow and Mr. Hopkins are “qualified persons” under NI 43-101. Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY and headquartered in Montreal. Our flagship asset is the 100% owned Renard Diamond Project, Québec’s first diamond mine. Stornoway is a growth oriented company with a world-class asset, in one of the world’s best mining jurisdictions, in one of the world’s great mining businesses. On behalf of the Board STORNOWAY DIAMOND CORPORATION /s/ “Matt Manson” Matt Manson President and Chief Executive For more information, please contact Matt Manson (President and CEO) at 416-304-1026 x2101 or Orin Baranowsky (Interim CFO and Vice President, Investor Relations and Corporate Development) at 416-304-1026 x2103 or toll free at 1-877-331-2232 This document contains forward-looking information (as defined in National Instrument 51 102 – Continuous Disclosure Obligations) and forward-looking statements within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995 (collectively referred to herein as “forward-looking information” or “forward-looking statements”). These forward-looking statements are made as of the date of this document and, the Corporation does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law. These forward-looking statements relate to future events or future performance and include, among others, statements with respect to Stornoway’s objectives for the ensuing year, our medium and long-term goals, and strategies to achieve those objectives and goals, as well as statements with respect to our management’s beliefs, plans, objectives, expectations, estimates, intentions and future outlook and anticipated events or results.   Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking statements made in this document include, but are not limited to, statements with respect to: (i) the amount of Mineral Reserves, Mineral Resources and exploration targets; (ii) the amount of future production over any period; (iii) net present value and internal rates of return of the mining operation; (iv) assumptions relating to recovered grade, size distribution and quality of diamonds, average ore recovery, internal dilution, mining dilution and other mining parameters set out in the 2016 Technical Report as well as levels of diamond breakage;  (v) assumptions relating to gross revenues, cost of sales, cash cost of production, gross margins estimates, planned and projected capital expenditure, liquidity and working capital requirements; (vi) mine expansion potential and expected mine life; (vii) expected time frames for completion of permitting and regulatory approvals related to ongoing  construction activities at the Renard Diamond Mine; (viii)  the expected time frames for the completion of the open pit and underground mine at the Renard Diamond Mine; (ix) the expected time frames for the ramp-up and achievement of plant nameplate capacity of the Renard Diamond Mine (x) the expected  financial obligations or costs incurred by Stornoway in connection with the ongoing development of the Renard Diamond Mine; (xi) future exploration plans; (xii) future market prices for rough diamonds; (xiii) the economic benefits of using liquefied natural gas rather than diesel for power generation; (xiv) sources of and anticipated financing requirements; (xv) the effectiveness, funding or availability, as the case may require, of the Senior Secured Loan and the remaining Equipment Facility and the use of proceeds therefrom; (xvi) the Corporation’s ability to meet its Subject Diamonds Interest delivery obligations under the Purchase and Sale Agreement; (xvii) the impact of the Financing Transactions on the Corporation’s operations, infrastructure, opportunities, financial condition, access to capital and overall strategy; (xviii) the foreign exchange rate between the US dollar and the Canadian dollar; and (xix) the availability of excess funding for the operation of the Renard Diamond Mine. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “schedule” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are made based upon certain assumptions by Stornoway or its consultants and other important factors that, if untrue, could cause the actual results, performances or achievements of Stornoway to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business prospects and strategies and the environment in which Stornoway will operate in the future, including the recovered grade, size distribution and quality of diamonds, average ore recovery, internal dilution, and levels of diamond breakage, the price of diamonds, anticipated costs and Stornoway’s ability to achieve its goals, anticipated financial performance, regulatory developments, development plans, exploration, development and mining activities and commitments, and the foreign exchange rate between the US and Canadian dollars. Although management considers its assumptions on such matters to be reasonable based on information currently available to it, they may prove to be incorrect. Certain important assumptions by Stornoway or its consultants in making forward-looking statements include, but are not limited to: (i) required capital investment and estimated workforce requirements; (ii) estimates of net present value and internal rates of return; (iii) recovered grade, size distribution and quality of diamonds, average ore recovery, internal dilution, mining dilution and other mining parameters set out in the 2016 Technical Report as well as levels of diamond breakage, (iv) receipt of regulatory approvals on acceptable terms within commonly experienced time frames; (v) anticipated timelines for ramp-up and achievement of nameplate capacity at the Renard Diamond Mine, (vi) anticipated timelines for the development of an open pit and underground mine at the Renard Diamond Mine;‎ (vii) anticipated geological formations; (viii) market prices for rough diamonds and their potential impact on the Renard Diamond Mine; (ix) the satisfaction or waiver of all conditions under the Senior Secured Loan and the remaining Equipment Facility to allow the Corporation to draw on the funding available under those financing elements; (x) Stornoway’s interpretation of the geological drill data collected and its potential impact on stated Mineral Resources and mine life; (xi) future exploration plans and objectives; (xii) the Corporation’s ability to meet its Subject Diamonds Interest delivery obligations under the Purchase and Sale Agreement; and (xiii) the continued strength of the US dollar against the Canadian dollar. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward- looking statements as a number of important risk factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur, including the assumption in many forward-looking statements that other forward-looking statements will be correct, but specifically include, without limitation: (i) risks relating to variations in the grade, size distribution and quality of diamonds, kimberlite lithologies and country rock content within the material identified as Mineral Resources from that predicted; (ii) variations in rates of recovery and levels of diamond breakage; (iii) the uncertainty as to whether further exploration of exploration targets will result in the targets being delineated as Mineral Resources; (iv) developments in world diamond markets; (v) slower increases in diamond valuations than assumed; (vi) risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar; (vii) increases in the costs of proposed capital, operating and sustainable capital expenditures; (viii) increases in financing costs or adverse changes to the terms of available financing, if any; (ix) tax rates or royalties being greater than assumed; (x) uncertainty of results of exploration in areas of potential expansion of resources; (xi) changes in development or mining plans due to changes in other factors or exploration results; (xii)  risks relating to the receipt of regulatory approvals or the implementation of the existing Impact and Benefits Agreement with aboriginal communities; (xiii) the effects of competition in the markets in which Stornoway operates; (xiv) operational and infrastructure risks; (xv) execution risk relating to the development of an operating mine at the Renard Diamond Mine; (xvi) failure to satisfy the conditions to the funding or availability, as the case may require, of the Senior Secured Loan and the Equipment Facility; (xvii) changes in the terms of the Forward Sale of Diamonds, the Senior Secured Loan or the Equipment Facility; (xviii) the funds of the Senior Secured Loan or the Equipment Facility not being available to the Corporation; (xix) the Corporation being unable to meet its Subject Diamonds Interest delivery obligations under the Purchase and Sale Agreement; (xx) future sales or issuances of Common Shares lowering the Common Share price and diluting the interest of existing shareholders; and (xxi) the additional risk factors described herein and in Stornoway’s annual and interim MD&A’s, most recently filed AIF, its other disclosure documents and Stornoway’s anticipation of and success in managing the foregoing risks. Stornoway cautions that the foregoing list of factors that may affect future results is not exhaustive and new, unforeseeable risks may arise from time to time. and (xxi) the additional risk factors described herein and in Stornoway’s annual and interim MD&A’s, most recently filed AIF, its other disclosure documents and Stornoway’s anticipation of and success in managing the foregoing risks. Stornoway cautions that the foregoing list of factors that may affect future results is not exhaustive and new, unforeseeable risks may arise from time to time.


News Article | May 9, 2017
Site: globenewswire.com

LONGUEUIL, Québec, May 09, 2017 (GLOBE NEWSWIRE) -- Stornoway Diamond Corporation (TSX:SWY) (the “Corporation” or “Stornoway”) announced today its results for the quarter ended March 31, 2017. 2 Based on an average C$: US$ conversion rate of $1.33. Matt Manson, President and CEO, commented: “This quarter represents the first full operating period for the Renard Mine. Mining rates, development progress in the underground mine, and carat production all continue to exceed plan. Mining costs and capital expenditures are tracking within budget. Achieved pricing in our first tender sales reflects the higher than normal levels of diamond breakage that we have been experiencing during the first months of processing ramp up. Pricing has also been impacted by a better than expected liberation of small diamonds and the market effects of Indian demonetization. Nevertheless, we are seeing positive trends in both the quality of our diamond production and in rough market pricing. We are particularly encouraged by the market’s reception for Quebec’s first diamond production. Yields of polished from the rough are reported as high, with good performance during manufacturing. Achieved pricing in the tender sales has been progressively higher compared to our reserve pricing as the market gains an understanding of the production, and tender participation has been strong. This trend has continued into the first sale of the second quarter, which was completed in April. As our production ramp-up continues, our focus remains the quality of our diamond recovery profile and the continued growth of our diamond sales.” Sales proceeds during the quarter totalled $48.5 million. This was the first quarter after the declaration of commercial production, and there were no sales in the comparable period. Sales include $6.8 million of deferred revenue relating to prior payments received by the Corporation under its streaming agreement. Total cost of sales were $36.4 million, with adjusted EBITDA1 of $15.0 million, or 35.9% of total sales. Net loss was $3.0 million, or $Nil per share and $0.01 loss per share fully diluted. Income during the quarter was impacted, amongst other things, by a gain in the fair value of an embedded derivative, interest charges relating to the company’s borrowings, and inventory variations relating to the accumulation of the project’s ore stockpile. Stornoway ended the quarter with cash, cash equivalents and short-term investments of $72.1 million, compared with $86.0 million at the end of the previous quarter. At quarter end, total financial liquidity, comprising cash and cash equivalents, receivables and available credit facilities stood at $153 million. One lost time incident (“LTI”) was recorded during the quarter, for a year to date LTI rate of 2.3 for contractors and zero for Stornoway employees. No incidents of environmental non-compliance were recorded during the quarter. Daily manpower at site in March averaged 272 workers, of which 19.5% were Crees of the Eeyou Istchee. Stornoway employees stood at 451 as at March 31, 2017, including 395 at the mine site, of which 14% were Crees, 25% were from Chibougamau and Chapais, and 61% were from outside the region. Commercial Production at the Renard Mine was officially declared on January 1, 2017, marking the end of the project’s initial capital expense period. During the first quarter 1,245,021 tonnes were mined from the Renard 2-3 and Renard 65 open pits, compared to a plan of 1,108,149 tonnes, with 625,576 tonnes of ore extracted. 419,233 tonnes of ore were processed with a diamond recovery of 385,151 carats at 92 cpht, compared to a plan of 406,000 tonnes and 369,307 carats at 91 cpht (increases of 3%, 4% and 1% respectively). Ore processed comprised primarily Renard 2 material, and was derived from both the working open pit and the ore stockpile. Processing rates during the quarter averaged 4,279 tonnes per day compared to a nameplate capacity of 6,000 tonnes per day as the project ramp-up continued. Elevated levels of diamond breakage in the process plant continues to influence the quality and size distribution of diamond recoveries. Mitigation activities are ongoing, and are focussed on achieving optimal crushing conditions in the Cone Crusher and High Pressure Grinding Roll, reducing the waste content in the ore-feed, and in minimizing re-circulation within the plant, particularly of free diamonds and waste. Initial progress has been encouraging. Development of the underground mine was 1,459 meters compared to a plan of 1,295 meters, and is now comfortably ahead of schedule. Development within ore at the 160 meters level is well advanced and ground conditions remain excellent. There has been no recurrence of the water inflow issues that affected ramp development in late 2015 and early 2016. Cash operating costs per tonne processed were $57.86 per tonne1 ($62.99 per carat) compared to a plan for the quarter of $60.14 per tonne ($66.12 per carat). Capital expenditures1 were $17.1 million, primarily related to the development of the underground mine. Stornoway sold a total of 459,126 carats during the quarter in 3 tender sales and 4 out-of-tender sales. All parcels of smaller and lower quality items that had been withdrawn from sale in the first Renard tender in November 2016 have now been sold, and the Corporation ended the quarter with no carried inventory other than normal mine production as goods in progress. Total sales recorded to the end of March 2017 have been 498,039 carats sold for proceeds of $54.5 million, or US$83 per carat ($110 per carat). These sales represent diamonds recovered between July 2016 and January 2017, during which the Corporation was experiencing high levels of diamond breakage in its process plant, and a higher recovery of small diamonds compared to plan. Realised prices in certain product categories were also impacted by the recent demonetization events in India. Pricing is expected to increase during the course of the year as breakage mitigation efforts continue and pricing for smaller and lower quality items recovers. Adjustments have also been made to the plant’s bottom screen cut-off to reduce the proportion of fines recovered, bringing it into compliance with the bottom size cut-off defined in the Mineral Resource and allowing higher future plant capacity. This will have the effect of reducing the proportion of small diamonds recovered, with a commensurate increase in average diamond pricing. Stornoway expects to achieve an annual average sales price in FY2017 of between US$100 and US$132 per carat, as per previous guidance. Stornoway expects to conduct two tender sales in the second quarter, three in the third, and two again in the fourth quarter. Exploration programs are ongoing on the Corporation’s 100% owned generative Canadian diamond projects, including the Adamantin property located approximately 100 km south of the Renard Diamond Project and 25 km west of the Route 167 Extension road.  Adamantin now comprises 28,171 hectares of claims in three blocks, following recent additional land acquisitions. Till sampling at Adamantin during 2015 confirmed the presence of indicator mineral anomalies interpreted to be sourced from undiscovered kimberlites with diamond potential, with one till sample having a diamond in the +0.25mm-0.50mm size fraction. Drilling during March and April of 2016 resulted in the discovery of 11 distinct kimberlite bodies, as announced on May 5, 2016. As announced September 1, 2016, no diamonds were recovered from these samples, leaving the source of the diamond in till unexplained. Further till sampling and geophysical surveys undertaken in 2016, have identified additional targets of interest. Drilling activities commenced before the end of the current quarter and were completed in April 2017. Two new kimberlites have been discovered and sampled for their potential diamond content. These results are not yet available. Stornoway will host a first quarter earnings conference call for analysts and investors on May 10, 2017 at 8:30am EST.  This call may be accessed by calling 1-844-215-3287 toll free in North America, of 1-209-905-5939 from international locations, with Conference ID 13010334. A live webcast of the call will be available at http://edge.media-server.com/m/p/5bzg2zeu. A replay of the call, and a copy of the earnings presentation, will be made available on the Stornoway website at www.stornowaydiamonds.com. This press release refers to certain financial measures, such as EBITDA, Adjusted EBITDA, Cash Operating Cost per Tonne Ore Processed, Capital Expenditures and Available Liquidity, which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. Please refer to the interim management and discussion analysis of the current quarter for more details about calculation of these financial measures in the “Non IFRS Financial Measures” section. “EBITDA” is the term the Corporation uses as an approximate measure of pre-tax operating cash flow and is generally used to better measure performance and evaluate trends of individual assets. EBITDA comprises earnings before deducting interest and other financial charges, income taxes and depreciation. “Adjusted EBITDA” is the calculation of EBITDA adjusted by all the non-cash items that are included in the EBITDA calculation. These items are share based compensation and the depreciation of deferred revenue. Also, exploration costs do not reflect the operating performance of the Corporation and are not indicative of future operating results. “Adjusted EBITDA Margin” is the calculation of Adjusted EBITDA divided by total revenues less amortization of deferred revenue from the Renard Stream. “Cash Operating Cost per Tonne Processed” is the term the Corporation uses to describe operating expenses (including inventory variation which includes depreciation) per tonne processed on a cash basis. This is calculated as cash operating cost divided by tonnes of ore processed for the period. This ratio provides the user with the total cash costs incurred by the mine during the period per tonne of ore processed, including mobilization costs. The most directly comparable measure calculated in accordance with IFRS is operating expenses. “Cash Operating Cost per Carats Recovered” is the total cash operating cost divided by carats recovered. “Capital Expenditure” is the term used to describe cash capital expenditure incurred.  This measure is consistent with that used in the $78.7M capital cost estimate previously provided as guidance for the fiscal year 2017. “Available Liquidity” comprises cash and cash equivalents, short-term investments and available credit facilities (less related upfront fees), net of payables and receivables. The Renard Diamond Mine is Quebec’s first producing diamond mine and Canada’s sixth. It is located approximately 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau in the James Bay region of north-central Québec. Construction on the project commenced on July 10, 2014, and commercial production was declared on January 1, 2017. Average annual diamond production is forecast at 1.8 million carats per annum over the first 10 years of mining. Readers are referred to the technical report dated January 11, 2016, in respect of the September 2015 Mineral Resource estimate, and the technical report dated March 30, 2016, in respect of the March 2016 Updated Mine Plan and Mineral Reserve Estimate for further details and assumptions relating to the project. Disclosure of a scientific or technical nature in this press release was prepared under the supervision of M. Patrick Godin, P.Eng. (Québec), Chief Operating Officer, and Mr. David Farrow, Pr.Sci.Nat (South Africa) and P.Geo. (BC), Vice President Diamonds. Stornoway’s exploration programs are supervised by Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration. Each of M. Godin, Mr. Farrow and Mr. Hopkins are “qualified persons” under NI 43-101. Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY and headquartered in Montreal. Our flagship asset is the 100% owned Renard Diamond Project, Québec’s first diamond mine. Stornoway is a growth oriented company with a world-class asset, in one of the world’s best mining jurisdictions, in one of the world’s great mining businesses. On behalf of the Board STORNOWAY DIAMOND CORPORATION /s/ “Matt Manson” Matt Manson President and Chief Executive For more information, please contact Matt Manson (President and CEO) at 416-304-1026 x2101 or Orin Baranowsky (Interim CFO and Vice President, Investor Relations and Corporate Development) at 416-304-1026 x2103 or toll free at 1-877-331-2232 This document contains forward-looking information (as defined in National Instrument 51 102 – Continuous Disclosure Obligations) and forward-looking statements within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995 (collectively referred to herein as “forward-looking information” or “forward-looking statements”). These forward-looking statements are made as of the date of this document and, the Corporation does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law. These forward-looking statements relate to future events or future performance and include, among others, statements with respect to Stornoway’s objectives for the ensuing year, our medium and long-term goals, and strategies to achieve those objectives and goals, as well as statements with respect to our management’s beliefs, plans, objectives, expectations, estimates, intentions and future outlook and anticipated events or results.   Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking statements made in this document include, but are not limited to, statements with respect to: (i) the amount of Mineral Reserves, Mineral Resources and exploration targets; (ii) the amount of future production over any period; (iii) net present value and internal rates of return of the mining operation; (iv) assumptions relating to recovered grade, size distribution and quality of diamonds, average ore recovery, internal dilution, mining dilution and other mining parameters set out in the 2016 Technical Report as well as levels of diamond breakage;  (v) assumptions relating to gross revenues, cost of sales, cash cost of production, gross margins estimates, planned and projected capital expenditure, liquidity and working capital requirements; (vi) mine expansion potential and expected mine life; (vii) expected time frames for completion of permitting and regulatory approvals related to ongoing  construction activities at the Renard Diamond Mine; (viii)  the expected time frames for the completion of the open pit and underground mine at the Renard Diamond Mine; (ix) the expected time frames for the ramp-up and achievement of plant nameplate capacity of the Renard Diamond Mine (x) the expected  financial obligations or costs incurred by Stornoway in connection with the ongoing development of the Renard Diamond Mine; (xi) future exploration plans; (xii) future market prices for rough diamonds; (xiii) the economic benefits of using liquefied natural gas rather than diesel for power generation; (xiv) sources of and anticipated financing requirements; (xv) the effectiveness, funding or availability, as the case may require, of the Senior Secured Loan and the remaining Equipment Facility and the use of proceeds therefrom; (xvi) the Corporation’s ability to meet its Subject Diamonds Interest delivery obligations under the Purchase and Sale Agreement; (xvii) the impact of the Financing Transactions on the Corporation’s operations, infrastructure, opportunities, financial condition, access to capital and overall strategy; (xviii) the foreign exchange rate between the US dollar and the Canadian dollar; and (xix) the availability of excess funding for the operation of the Renard Diamond Mine. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “schedule” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are made based upon certain assumptions by Stornoway or its consultants and other important factors that, if untrue, could cause the actual results, performances or achievements of Stornoway to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business prospects and strategies and the environment in which Stornoway will operate in the future, including the recovered grade, size distribution and quality of diamonds, average ore recovery, internal dilution, and levels of diamond breakage, the price of diamonds, anticipated costs and Stornoway’s ability to achieve its goals, anticipated financial performance, regulatory developments, development plans, exploration, development and mining activities and commitments, and the foreign exchange rate between the US and Canadian dollars. Although management considers its assumptions on such matters to be reasonable based on information currently available to it, they may prove to be incorrect. Certain important assumptions by Stornoway or its consultants in making forward-looking statements include, but are not limited to: (i) required capital investment and estimated workforce requirements; (ii) estimates of net present value and internal rates of return; (iii) recovered grade, size distribution and quality of diamonds, average ore recovery, internal dilution, mining dilution and other mining parameters set out in the 2016 Technical Report as well as levels of diamond breakage, (iv) receipt of regulatory approvals on acceptable terms within commonly experienced time frames; (v) anticipated timelines for ramp-up and achievement of nameplate capacity at the Renard Diamond Mine, (vi) anticipated timelines for the development of an open pit and underground mine at the Renard Diamond Mine;‎ (vii) anticipated geological formations; (viii) market prices for rough diamonds and their potential impact on the Renard Diamond Mine; (ix) the satisfaction or waiver of all conditions under the Senior Secured Loan and the remaining Equipment Facility to allow the Corporation to draw on the funding available under those financing elements; (x) Stornoway’s interpretation of the geological drill data collected and its potential impact on stated Mineral Resources and mine life; (xi) future exploration plans and objectives; (xii) the Corporation’s ability to meet its Subject Diamonds Interest delivery obligations under the Purchase and Sale Agreement; and (xiii) the continued strength of the US dollar against the Canadian dollar. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward- looking statements as a number of important risk factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur, including the assumption in many forward-looking statements that other forward-looking statements will be correct, but specifically include, without limitation: (i) risks relating to variations in the grade, size distribution and quality of diamonds, kimberlite lithologies and country rock content within the material identified as Mineral Resources from that predicted; (ii) variations in rates of recovery and levels of diamond breakage; (iii) the uncertainty as to whether further exploration of exploration targets will result in the targets being delineated as Mineral Resources; (iv) developments in world diamond markets; (v) slower increases in diamond valuations than assumed; (vi) risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar; (vii) increases in the costs of proposed capital, operating and sustainable capital expenditures; (viii) increases in financing costs or adverse changes to the terms of available financing, if any; (ix) tax rates or royalties being greater than assumed; (x) uncertainty of results of exploration in areas of potential expansion of resources; (xi) changes in development or mining plans due to changes in other factors or exploration results; (xii)  risks relating to the receipt of regulatory approvals or the implementation of the existing Impact and Benefits Agreement with aboriginal communities; (xiii) the effects of competition in the markets in which Stornoway operates; (xiv) operational and infrastructure risks; (xv) execution risk relating to the development of an operating mine at the Renard Diamond Mine; (xvi) failure to satisfy the conditions to the funding or availability, as the case may require, of the Senior Secured Loan and the Equipment Facility; (xvii) changes in the terms of the Forward Sale of Diamonds, the Senior Secured Loan or the Equipment Facility; (xviii) the funds of the Senior Secured Loan or the Equipment Facility not being available to the Corporation; (xix) the Corporation being unable to meet its Subject Diamonds Interest delivery obligations under the Purchase and Sale Agreement; (xx) future sales or issuances of Common Shares lowering the Common Share price and diluting the interest of existing shareholders; and (xxi) the additional risk factors described herein and in Stornoway’s annual and interim MD&A’s, most recently filed AIF, its other disclosure documents and Stornoway’s anticipation of and success in managing the foregoing risks. Stornoway cautions that the foregoing list of factors that may affect future results is not exhaustive and new, unforeseeable risks may arise from time to time. and (xxi) the additional risk factors described herein and in Stornoway’s annual and interim MD&A’s, most recently filed AIF, its other disclosure documents and Stornoway’s anticipation of and success in managing the foregoing risks. Stornoway cautions that the foregoing list of factors that may affect future results is not exhaustive and new, unforeseeable risks may arise from time to time.


News Article | May 9, 2017
Site: globenewswire.com

LONGUEUIL, Québec, May 09, 2017 (GLOBE NEWSWIRE) -- Stornoway Diamond Corporation (TSX:SWY) (the “Corporation” or “Stornoway”) announced today its results for the quarter ended March 31, 2017. 2 Based on an average C$: US$ conversion rate of $1.33. Matt Manson, President and CEO, commented: “This quarter represents the first full operating period for the Renard Mine. Mining rates, development progress in the underground mine, and carat production all continue to exceed plan. Mining costs and capital expenditures are tracking within budget. Achieved pricing in our first tender sales reflects the higher than normal levels of diamond breakage that we have been experiencing during the first months of processing ramp up. Pricing has also been impacted by a better than expected liberation of small diamonds and the market effects of Indian demonetization. Nevertheless, we are seeing positive trends in both the quality of our diamond production and in rough market pricing. We are particularly encouraged by the market’s reception for Quebec’s first diamond production. Yields of polished from the rough are reported as high, with good performance during manufacturing. Achieved pricing in the tender sales has been progressively higher compared to our reserve pricing as the market gains an understanding of the production, and tender participation has been strong. This trend has continued into the first sale of the second quarter, which was completed in April. As our production ramp-up continues, our focus remains the quality of our diamond recovery profile and the continued growth of our diamond sales.” Sales proceeds during the quarter totalled $48.5 million. This was the first quarter after the declaration of commercial production, and there were no sales in the comparable period. Sales include $6.8 million of deferred revenue relating to prior payments received by the Corporation under its streaming agreement. Total cost of sales were $36.4 million, with adjusted EBITDA1 of $15.0 million, or 35.9% of total sales. Net loss was $3.0 million, or $Nil per share and $0.01 loss per share fully diluted. Income during the quarter was impacted, amongst other things, by a gain in the fair value of an embedded derivative, interest charges relating to the company’s borrowings, and inventory variations relating to the accumulation of the project’s ore stockpile. Stornoway ended the quarter with cash, cash equivalents and short-term investments of $72.1 million, compared with $86.0 million at the end of the previous quarter. At quarter end, total financial liquidity, comprising cash and cash equivalents, receivables and available credit facilities stood at $153 million. One lost time incident (“LTI”) was recorded during the quarter, for a year to date LTI rate of 2.3 for contractors and zero for Stornoway employees. No incidents of environmental non-compliance were recorded during the quarter. Daily manpower at site in March averaged 272 workers, of which 19.5% were Crees of the Eeyou Istchee. Stornoway employees stood at 451 as at March 31, 2017, including 395 at the mine site, of which 14% were Crees, 25% were from Chibougamau and Chapais, and 61% were from outside the region. Commercial Production at the Renard Mine was officially declared on January 1, 2017, marking the end of the project’s initial capital expense period. During the first quarter 1,245,021 tonnes were mined from the Renard 2-3 and Renard 65 open pits, compared to a plan of 1,108,149 tonnes, with 625,576 tonnes of ore extracted. 419,233 tonnes of ore were processed with a diamond recovery of 385,151 carats at 92 cpht, compared to a plan of 406,000 tonnes and 369,307 carats at 91 cpht (increases of 3%, 4% and 1% respectively). Ore processed comprised primarily Renard 2 material, and was derived from both the working open pit and the ore stockpile. Processing rates during the quarter averaged 4,279 tonnes per day compared to a nameplate capacity of 6,000 tonnes per day as the project ramp-up continued. Elevated levels of diamond breakage in the process plant continues to influence the quality and size distribution of diamond recoveries. Mitigation activities are ongoing, and are focussed on achieving optimal crushing conditions in the Cone Crusher and High Pressure Grinding Roll, reducing the waste content in the ore-feed, and in minimizing re-circulation within the plant, particularly of free diamonds and waste. Initial progress has been encouraging. Development of the underground mine was 1,459 meters compared to a plan of 1,295 meters, and is now comfortably ahead of schedule. Development within ore at the 160 meters level is well advanced and ground conditions remain excellent. There has been no recurrence of the water inflow issues that affected ramp development in late 2015 and early 2016. Cash operating costs per tonne processed were $57.86 per tonne1 ($62.99 per carat) compared to a plan for the quarter of $60.14 per tonne ($66.12 per carat). Capital expenditures1 were $17.1 million, primarily related to the development of the underground mine. Stornoway sold a total of 459,126 carats during the quarter in 3 tender sales and 4 out-of-tender sales. All parcels of smaller and lower quality items that had been withdrawn from sale in the first Renard tender in November 2016 have now been sold, and the Corporation ended the quarter with no carried inventory other than normal mine production as goods in progress. Total sales recorded to the end of March 2017 have been 498,039 carats sold for proceeds of $54.5 million, or US$83 per carat ($110 per carat). These sales represent diamonds recovered between July 2016 and January 2017, during which the Corporation was experiencing high levels of diamond breakage in its process plant, and a higher recovery of small diamonds compared to plan. Realised prices in certain product categories were also impacted by the recent demonetization events in India. Pricing is expected to increase during the course of the year as breakage mitigation efforts continue and pricing for smaller and lower quality items recovers. Adjustments have also been made to the plant’s bottom screen cut-off to reduce the proportion of fines recovered, bringing it into compliance with the bottom size cut-off defined in the Mineral Resource and allowing higher future plant capacity. This will have the effect of reducing the proportion of small diamonds recovered, with a commensurate increase in average diamond pricing. Stornoway expects to achieve an annual average sales price in FY2017 of between US$100 and US$132 per carat, as per previous guidance. Stornoway expects to conduct two tender sales in the second quarter, three in the third, and two again in the fourth quarter. Exploration programs are ongoing on the Corporation’s 100% owned generative Canadian diamond projects, including the Adamantin property located approximately 100 km south of the Renard Diamond Project and 25 km west of the Route 167 Extension road.  Adamantin now comprises 28,171 hectares of claims in three blocks, following recent additional land acquisitions. Till sampling at Adamantin during 2015 confirmed the presence of indicator mineral anomalies interpreted to be sourced from undiscovered kimberlites with diamond potential, with one till sample having a diamond in the +0.25mm-0.50mm size fraction. Drilling during March and April of 2016 resulted in the discovery of 11 distinct kimberlite bodies, as announced on May 5, 2016. As announced September 1, 2016, no diamonds were recovered from these samples, leaving the source of the diamond in till unexplained. Further till sampling and geophysical surveys undertaken in 2016, have identified additional targets of interest. Drilling activities commenced before the end of the current quarter and were completed in April 2017. Two new kimberlites have been discovered and sampled for their potential diamond content. These results are not yet available. Stornoway will host a first quarter earnings conference call for analysts and investors on May 10, 2017 at 8:30am EST.  This call may be accessed by calling 1-844-215-3287 toll free in North America, of 1-209-905-5939 from international locations, with Conference ID 13010334. A live webcast of the call will be available at http://edge.media-server.com/m/p/5bzg2zeu. A replay of the call, and a copy of the earnings presentation, will be made available on the Stornoway website at www.stornowaydiamonds.com. This press release refers to certain financial measures, such as EBITDA, Adjusted EBITDA, Cash Operating Cost per Tonne Ore Processed, Capital Expenditures and Available Liquidity, which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. Please refer to the interim management and discussion analysis of the current quarter for more details about calculation of these financial measures in the “Non IFRS Financial Measures” section. “EBITDA” is the term the Corporation uses as an approximate measure of pre-tax operating cash flow and is generally used to better measure performance and evaluate trends of individual assets. EBITDA comprises earnings before deducting interest and other financial charges, income taxes and depreciation. “Adjusted EBITDA” is the calculation of EBITDA adjusted by all the non-cash items that are included in the EBITDA calculation. These items are share based compensation and the depreciation of deferred revenue. Also, exploration costs do not reflect the operating performance of the Corporation and are not indicative of future operating results. “Adjusted EBITDA Margin” is the calculation of Adjusted EBITDA divided by total revenues less amortization of deferred revenue from the Renard Stream. “Cash Operating Cost per Tonne Processed” is the term the Corporation uses to describe operating expenses (including inventory variation which includes depreciation) per tonne processed on a cash basis. This is calculated as cash operating cost divided by tonnes of ore processed for the period. This ratio provides the user with the total cash costs incurred by the mine during the period per tonne of ore processed, including mobilization costs. The most directly comparable measure calculated in accordance with IFRS is operating expenses. “Cash Operating Cost per Carats Recovered” is the total cash operating cost divided by carats recovered. “Capital Expenditure” is the term used to describe cash capital expenditure incurred.  This measure is consistent with that used in the $78.7M capital cost estimate previously provided as guidance for the fiscal year 2017. “Available Liquidity” comprises cash and cash equivalents, short-term investments and available credit facilities (less related upfront fees), net of payables and receivables. The Renard Diamond Mine is Quebec’s first producing diamond mine and Canada’s sixth. It is located approximately 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau in the James Bay region of north-central Québec. Construction on the project commenced on July 10, 2014, and commercial production was declared on January 1, 2017. Average annual diamond production is forecast at 1.8 million carats per annum over the first 10 years of mining. Readers are referred to the technical report dated January 11, 2016, in respect of the September 2015 Mineral Resource estimate, and the technical report dated March 30, 2016, in respect of the March 2016 Updated Mine Plan and Mineral Reserve Estimate for further details and assumptions relating to the project. Disclosure of a scientific or technical nature in this press release was prepared under the supervision of M. Patrick Godin, P.Eng. (Québec), Chief Operating Officer, and Mr. David Farrow, Pr.Sci.Nat (South Africa) and P.Geo. (BC), Vice President Diamonds. Stornoway’s exploration programs are supervised by Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration. Each of M. Godin, Mr. Farrow and Mr. Hopkins are “qualified persons” under NI 43-101. Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY and headquartered in Montreal. Our flagship asset is the 100% owned Renard Diamond Project, Québec’s first diamond mine. Stornoway is a growth oriented company with a world-class asset, in one of the world’s best mining jurisdictions, in one of the world’s great mining businesses. On behalf of the Board STORNOWAY DIAMOND CORPORATION /s/ “Matt Manson” Matt Manson President and Chief Executive For more information, please contact Matt Manson (President and CEO) at 416-304-1026 x2101 or Orin Baranowsky (Interim CFO and Vice President, Investor Relations and Corporate Development) at 416-304-1026 x2103 or toll free at 1-877-331-2232 This document contains forward-looking information (as defined in National Instrument 51 102 – Continuous Disclosure Obligations) and forward-looking statements within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995 (collectively referred to herein as “forward-looking information” or “forward-looking statements”). These forward-looking statements are made as of the date of this document and, the Corporation does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law. These forward-looking statements relate to future events or future performance and include, among others, statements with respect to Stornoway’s objectives for the ensuing year, our medium and long-term goals, and strategies to achieve those objectives and goals, as well as statements with respect to our management’s beliefs, plans, objectives, expectations, estimates, intentions and future outlook and anticipated events or results.   Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking statements made in this document include, but are not limited to, statements with respect to: (i) the amount of Mineral Reserves, Mineral Resources and exploration targets; (ii) the amount of future production over any period; (iii) net present value and internal rates of return of the mining operation; (iv) assumptions relating to recovered grade, size distribution and quality of diamonds, average ore recovery, internal dilution, mining dilution and other mining parameters set out in the 2016 Technical Report as well as levels of diamond breakage;  (v) assumptions relating to gross revenues, cost of sales, cash cost of production, gross margins estimates, planned and projected capital expenditure, liquidity and working capital requirements; (vi) mine expansion potential and expected mine life; (vii) expected time frames for completion of permitting and regulatory approvals related to ongoing  construction activities at the Renard Diamond Mine; (viii)  the expected time frames for the completion of the open pit and underground mine at the Renard Diamond Mine; (ix) the expected time frames for the ramp-up and achievement of plant nameplate capacity of the Renard Diamond Mine (x) the expected  financial obligations or costs incurred by Stornoway in connection with the ongoing development of the Renard Diamond Mine; (xi) future exploration plans; (xii) future market prices for rough diamonds; (xiii) the economic benefits of using liquefied natural gas rather than diesel for power generation; (xiv) sources of and anticipated financing requirements; (xv) the effectiveness, funding or availability, as the case may require, of the Senior Secured Loan and the remaining Equipment Facility and the use of proceeds therefrom; (xvi) the Corporation’s ability to meet its Subject Diamonds Interest delivery obligations under the Purchase and Sale Agreement; (xvii) the impact of the Financing Transactions on the Corporation’s operations, infrastructure, opportunities, financial condition, access to capital and overall strategy; (xviii) the foreign exchange rate between the US dollar and the Canadian dollar; and (xix) the availability of excess funding for the operation of the Renard Diamond Mine. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “schedule” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are made based upon certain assumptions by Stornoway or its consultants and other important factors that, if untrue, could cause the actual results, performances or achievements of Stornoway to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business prospects and strategies and the environment in which Stornoway will operate in the future, including the recovered grade, size distribution and quality of diamonds, average ore recovery, internal dilution, and levels of diamond breakage, the price of diamonds, anticipated costs and Stornoway’s ability to achieve its goals, anticipated financial performance, regulatory developments, development plans, exploration, development and mining activities and commitments, and the foreign exchange rate between the US and Canadian dollars. Although management considers its assumptions on such matters to be reasonable based on information currently available to it, they may prove to be incorrect. Certain important assumptions by Stornoway or its consultants in making forward-looking statements include, but are not limited to: (i) required capital investment and estimated workforce requirements; (ii) estimates of net present value and internal rates of return; (iii) recovered grade, size distribution and quality of diamonds, average ore recovery, internal dilution, mining dilution and other mining parameters set out in the 2016 Technical Report as well as levels of diamond breakage, (iv) receipt of regulatory approvals on acceptable terms within commonly experienced time frames; (v) anticipated timelines for ramp-up and achievement of nameplate capacity at the Renard Diamond Mine, (vi) anticipated timelines for the development of an open pit and underground mine at the Renard Diamond Mine;‎ (vii) anticipated geological formations; (viii) market prices for rough diamonds and their potential impact on the Renard Diamond Mine; (ix) the satisfaction or waiver of all conditions under the Senior Secured Loan and the remaining Equipment Facility to allow the Corporation to draw on the funding available under those financing elements; (x) Stornoway’s interpretation of the geological drill data collected and its potential impact on stated Mineral Resources and mine life; (xi) future exploration plans and objectives; (xii) the Corporation’s ability to meet its Subject Diamonds Interest delivery obligations under the Purchase and Sale Agreement; and (xiii) the continued strength of the US dollar against the Canadian dollar. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward- looking statements as a number of important risk factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur, including the assumption in many forward-looking statements that other forward-looking statements will be correct, but specifically include, without limitation: (i) risks relating to variations in the grade, size distribution and quality of diamonds, kimberlite lithologies and country rock content within the material identified as Mineral Resources from that predicted; (ii) variations in rates of recovery and levels of diamond breakage; (iii) the uncertainty as to whether further exploration of exploration targets will result in the targets being delineated as Mineral Resources; (iv) developments in world diamond markets; (v) slower increases in diamond valuations than assumed; (vi) risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar; (vii) increases in the costs of proposed capital, operating and sustainable capital expenditures; (viii) increases in financing costs or adverse changes to the terms of available financing, if any; (ix) tax rates or royalties being greater than assumed; (x) uncertainty of results of exploration in areas of potential expansion of resources; (xi) changes in development or mining plans due to changes in other factors or exploration results; (xii)  risks relating to the receipt of regulatory approvals or the implementation of the existing Impact and Benefits Agreement with aboriginal communities; (xiii) the effects of competition in the markets in which Stornoway operates; (xiv) operational and infrastructure risks; (xv) execution risk relating to the development of an operating mine at the Renard Diamond Mine; (xvi) failure to satisfy the conditions to the funding or availability, as the case may require, of the Senior Secured Loan and the Equipment Facility; (xvii) changes in the terms of the Forward Sale of Diamonds, the Senior Secured Loan or the Equipment Facility; (xviii) the funds of the Senior Secured Loan or the Equipment Facility not being available to the Corporation; (xix) the Corporation being unable to meet its Subject Diamonds Interest delivery obligations under the Purchase and Sale Agreement; (xx) future sales or issuances of Common Shares lowering the Common Share price and diluting the interest of existing shareholders; and (xxi) the additional risk factors described herein and in Stornoway’s annual and interim MD&A’s, most recently filed AIF, its other disclosure documents and Stornoway’s anticipation of and success in managing the foregoing risks. Stornoway cautions that the foregoing list of factors that may affect future results is not exhaustive and new, unforeseeable risks may arise from time to time. and (xxi) the additional risk factors described herein and in Stornoway’s annual and interim MD&A’s, most recently filed AIF, its other disclosure documents and Stornoway’s anticipation of and success in managing the foregoing risks. Stornoway cautions that the foregoing list of factors that may affect future results is not exhaustive and new, unforeseeable risks may arise from time to time.


News Article | May 9, 2017
Site: globenewswire.com

LONGUEUIL, Québec, May 09, 2017 (GLOBE NEWSWIRE) -- Stornoway Diamond Corporation (TSX:SWY) (the “Corporation” or “Stornoway”) announced today its results for the quarter ended March 31, 2017. 2 Based on an average C$: US$ conversion rate of $1.33. Matt Manson, President and CEO, commented: “This quarter represents the first full operating period for the Renard Mine. Mining rates, development progress in the underground mine, and carat production all continue to exceed plan. Mining costs and capital expenditures are tracking within budget. Achieved pricing in our first tender sales reflects the higher than normal levels of diamond breakage that we have been experiencing during the first months of processing ramp up. Pricing has also been impacted by a better than expected liberation of small diamonds and the market effects of Indian demonetization. Nevertheless, we are seeing positive trends in both the quality of our diamond production and in rough market pricing. We are particularly encouraged by the market’s reception for Quebec’s first diamond production. Yields of polished from the rough are reported as high, with good performance during manufacturing. Achieved pricing in the tender sales has been progressively higher compared to our reserve pricing as the market gains an understanding of the production, and tender participation has been strong. This trend has continued into the first sale of the second quarter, which was completed in April. As our production ramp-up continues, our focus remains the quality of our diamond recovery profile and the continued growth of our diamond sales.” Sales proceeds during the quarter totalled $48.5 million. This was the first quarter after the declaration of commercial production, and there were no sales in the comparable period. Sales include $6.8 million of deferred revenue relating to prior payments received by the Corporation under its streaming agreement. Total cost of sales were $36.4 million, with adjusted EBITDA1 of $15.0 million, or 35.9% of total sales. Net loss was $3.0 million, or $Nil per share and $0.01 loss per share fully diluted. Income during the quarter was impacted, amongst other things, by a gain in the fair value of an embedded derivative, interest charges relating to the company’s borrowings, and inventory variations relating to the accumulation of the project’s ore stockpile. Stornoway ended the quarter with cash, cash equivalents and short-term investments of $72.1 million, compared with $86.0 million at the end of the previous quarter. At quarter end, total financial liquidity, comprising cash and cash equivalents, receivables and available credit facilities stood at $153 million. One lost time incident (“LTI”) was recorded during the quarter, for a year to date LTI rate of 2.3 for contractors and zero for Stornoway employees. No incidents of environmental non-compliance were recorded during the quarter. Daily manpower at site in March averaged 272 workers, of which 19.5% were Crees of the Eeyou Istchee. Stornoway employees stood at 451 as at March 31, 2017, including 395 at the mine site, of which 14% were Crees, 25% were from Chibougamau and Chapais, and 61% were from outside the region. Commercial Production at the Renard Mine was officially declared on January 1, 2017, marking the end of the project’s initial capital expense period. During the first quarter 1,245,021 tonnes were mined from the Renard 2-3 and Renard 65 open pits, compared to a plan of 1,108,149 tonnes, with 625,576 tonnes of ore extracted. 419,233 tonnes of ore were processed with a diamond recovery of 385,151 carats at 92 cpht, compared to a plan of 406,000 tonnes and 369,307 carats at 91 cpht (increases of 3%, 4% and 1% respectively). Ore processed comprised primarily Renard 2 material, and was derived from both the working open pit and the ore stockpile. Processing rates during the quarter averaged 4,279 tonnes per day compared to a nameplate capacity of 6,000 tonnes per day as the project ramp-up continued. Elevated levels of diamond breakage in the process plant continues to influence the quality and size distribution of diamond recoveries. Mitigation activities are ongoing, and are focussed on achieving optimal crushing conditions in the Cone Crusher and High Pressure Grinding Roll, reducing the waste content in the ore-feed, and in minimizing re-circulation within the plant, particularly of free diamonds and waste. Initial progress has been encouraging. Development of the underground mine was 1,459 meters compared to a plan of 1,295 meters, and is now comfortably ahead of schedule. Development within ore at the 160 meters level is well advanced and ground conditions remain excellent. There has been no recurrence of the water inflow issues that affected ramp development in late 2015 and early 2016. Cash operating costs per tonne processed were $57.86 per tonne1 ($62.99 per carat) compared to a plan for the quarter of $60.14 per tonne ($66.12 per carat). Capital expenditures1 were $17.1 million, primarily related to the development of the underground mine. Stornoway sold a total of 459,126 carats during the quarter in 3 tender sales and 4 out-of-tender sales. All parcels of smaller and lower quality items that had been withdrawn from sale in the first Renard tender in November 2016 have now been sold, and the Corporation ended the quarter with no carried inventory other than normal mine production as goods in progress. Total sales recorded to the end of March 2017 have been 498,039 carats sold for proceeds of $54.5 million, or US$83 per carat ($110 per carat). These sales represent diamonds recovered between July 2016 and January 2017, during which the Corporation was experiencing high levels of diamond breakage in its process plant, and a higher recovery of small diamonds compared to plan. Realised prices in certain product categories were also impacted by the recent demonetization events in India. Pricing is expected to increase during the course of the year as breakage mitigation efforts continue and pricing for smaller and lower quality items recovers. Adjustments have also been made to the plant’s bottom screen cut-off to reduce the proportion of fines recovered, bringing it into compliance with the bottom size cut-off defined in the Mineral Resource and allowing higher future plant capacity. This will have the effect of reducing the proportion of small diamonds recovered, with a commensurate increase in average diamond pricing. Stornoway expects to achieve an annual average sales price in FY2017 of between US$100 and US$132 per carat, as per previous guidance. Stornoway expects to conduct two tender sales in the second quarter, three in the third, and two again in the fourth quarter. Exploration programs are ongoing on the Corporation’s 100% owned generative Canadian diamond projects, including the Adamantin property located approximately 100 km south of the Renard Diamond Project and 25 km west of the Route 167 Extension road.  Adamantin now comprises 28,171 hectares of claims in three blocks, following recent additional land acquisitions. Till sampling at Adamantin during 2015 confirmed the presence of indicator mineral anomalies interpreted to be sourced from undiscovered kimberlites with diamond potential, with one till sample having a diamond in the +0.25mm-0.50mm size fraction. Drilling during March and April of 2016 resulted in the discovery of 11 distinct kimberlite bodies, as announced on May 5, 2016. As announced September 1, 2016, no diamonds were recovered from these samples, leaving the source of the diamond in till unexplained. Further till sampling and geophysical surveys undertaken in 2016, have identified additional targets of interest. Drilling activities commenced before the end of the current quarter and were completed in April 2017. Two new kimberlites have been discovered and sampled for their potential diamond content. These results are not yet available. Stornoway will host a first quarter earnings conference call for analysts and investors on May 10, 2017 at 8:30am EST.  This call may be accessed by calling 1-844-215-3287 toll free in North America, of 1-209-905-5939 from international locations, with Conference ID 13010334. A live webcast of the call will be available at http://edge.media-server.com/m/p/5bzg2zeu. A replay of the call, and a copy of the earnings presentation, will be made available on the Stornoway website at www.stornowaydiamonds.com. This press release refers to certain financial measures, such as EBITDA, Adjusted EBITDA, Cash Operating Cost per Tonne Ore Processed, Capital Expenditures and Available Liquidity, which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. Please refer to the interim management and discussion analysis of the current quarter for more details about calculation of these financial measures in the “Non IFRS Financial Measures” section. “EBITDA” is the term the Corporation uses as an approximate measure of pre-tax operating cash flow and is generally used to better measure performance and evaluate trends of individual assets. EBITDA comprises earnings before deducting interest and other financial charges, income taxes and depreciation. “Adjusted EBITDA” is the calculation of EBITDA adjusted by all the non-cash items that are included in the EBITDA calculation. These items are share based compensation and the depreciation of deferred revenue. Also, exploration costs do not reflect the operating performance of the Corporation and are not indicative of future operating results. “Adjusted EBITDA Margin” is the calculation of Adjusted EBITDA divided by total revenues less amortization of deferred revenue from the Renard Stream. “Cash Operating Cost per Tonne Processed” is the term the Corporation uses to describe operating expenses (including inventory variation which includes depreciation) per tonne processed on a cash basis. This is calculated as cash operating cost divided by tonnes of ore processed for the period. This ratio provides the user with the total cash costs incurred by the mine during the period per tonne of ore processed, including mobilization costs. The most directly comparable measure calculated in accordance with IFRS is operating expenses. “Cash Operating Cost per Carats Recovered” is the total cash operating cost divided by carats recovered. “Capital Expenditure” is the term used to describe cash capital expenditure incurred.  This measure is consistent with that used in the $78.7M capital cost estimate previously provided as guidance for the fiscal year 2017. “Available Liquidity” comprises cash and cash equivalents, short-term investments and available credit facilities (less related upfront fees), net of payables and receivables. The Renard Diamond Mine is Quebec’s first producing diamond mine and Canada’s sixth. It is located approximately 250 km north of the Cree community of Mistissini and 350 km north of Chibougamau in the James Bay region of north-central Québec. Construction on the project commenced on July 10, 2014, and commercial production was declared on January 1, 2017. Average annual diamond production is forecast at 1.8 million carats per annum over the first 10 years of mining. Readers are referred to the technical report dated January 11, 2016, in respect of the September 2015 Mineral Resource estimate, and the technical report dated March 30, 2016, in respect of the March 2016 Updated Mine Plan and Mineral Reserve Estimate for further details and assumptions relating to the project. Disclosure of a scientific or technical nature in this press release was prepared under the supervision of M. Patrick Godin, P.Eng. (Québec), Chief Operating Officer, and Mr. David Farrow, Pr.Sci.Nat (South Africa) and P.Geo. (BC), Vice President Diamonds. Stornoway’s exploration programs are supervised by Robin Hopkins, P.Geol. (NT/NU), Vice President, Exploration. Each of M. Godin, Mr. Farrow and Mr. Hopkins are “qualified persons” under NI 43-101. Stornoway is a leading Canadian diamond exploration and development company listed on the Toronto Stock Exchange under the symbol SWY and headquartered in Montreal. Our flagship asset is the 100% owned Renard Diamond Project, Québec’s first diamond mine. Stornoway is a growth oriented company with a world-class asset, in one of the world’s best mining jurisdictions, in one of the world’s great mining businesses. On behalf of the Board STORNOWAY DIAMOND CORPORATION /s/ “Matt Manson” Matt Manson President and Chief Executive For more information, please contact Matt Manson (President and CEO) at 416-304-1026 x2101 or Orin Baranowsky (Interim CFO and Vice President, Investor Relations and Corporate Development) at 416-304-1026 x2103 or toll free at 1-877-331-2232 This document contains forward-looking information (as defined in National Instrument 51 102 – Continuous Disclosure Obligations) and forward-looking statements within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995 (collectively referred to herein as “forward-looking information” or “forward-looking statements”). These forward-looking statements are made as of the date of this document and, the Corporation does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by law. These forward-looking statements relate to future events or future performance and include, among others, statements with respect to Stornoway’s objectives for the ensuing year, our medium and long-term goals, and strategies to achieve those objectives and goals, as well as statements with respect to our management’s beliefs, plans, objectives, expectations, estimates, intentions and future outlook and anticipated events or results.   Although management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward-looking statements made in this document include, but are not limited to, statements with respect to: (i) the amount of Mineral Reserves, Mineral Resources and exploration targets; (ii) the amount of future production over any period; (iii) net present value and internal rates of return of the mining operation; (iv) assumptions relating to recovered grade, size distribution and quality of diamonds, average ore recovery, internal dilution, mining dilution and other mining parameters set out in the 2016 Technical Report as well as levels of diamond breakage;  (v) assumptions relating to gross revenues, cost of sales, cash cost of production, gross margins estimates, planned and projected capital expenditure, liquidity and working capital requirements; (vi) mine expansion potential and expected mine life; (vii) expected time frames for completion of permitting and regulatory approvals related to ongoing  construction activities at the Renard Diamond Mine; (viii)  the expected time frames for the completion of the open pit and underground mine at the Renard Diamond Mine; (ix) the expected time frames for the ramp-up and achievement of plant nameplate capacity of the Renard Diamond Mine (x) the expected  financial obligations or costs incurred by Stornoway in connection with the ongoing development of the Renard Diamond Mine; (xi) future exploration plans; (xii) future market prices for rough diamonds; (xiii) the economic benefits of using liquefied natural gas rather than diesel for power generation; (xiv) sources of and anticipated financing requirements; (xv) the effectiveness, funding or availability, as the case may require, of the Senior Secured Loan and the remaining Equipment Facility and the use of proceeds therefrom; (xvi) the Corporation’s ability to meet its Subject Diamonds Interest delivery obligations under the Purchase and Sale Agreement; (xvii) the impact of the Financing Transactions on the Corporation’s operations, infrastructure, opportunities, financial condition, access to capital and overall strategy; (xviii) the foreign exchange rate between the US dollar and the Canadian dollar; and (xix) the availability of excess funding for the operation of the Renard Diamond Mine. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “schedule” or variations thereof or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are made based upon certain assumptions by Stornoway or its consultants and other important factors that, if untrue, could cause the actual results, performances or achievements of Stornoway to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business prospects and strategies and the environment in which Stornoway will operate in the future, including the recovered grade, size distribution and quality of diamonds, average ore recovery, internal dilution, and levels of diamond breakage, the price of diamonds, anticipated costs and Stornoway’s ability to achieve its goals, anticipated financial performance, regulatory developments, development plans, exploration, development and mining activities and commitments, and the foreign exchange rate between the US and Canadian dollars. Although management considers its assumptions on such matters to be reasonable based on information currently available to it, they may prove to be incorrect. Certain important assumptions by Stornoway or its consultants in making forward-looking statements include, but are not limited to: (i) required capital investment and estimated workforce requirements; (ii) estimates of net present value and internal rates of return; (iii) recovered grade, size distribution and quality of diamonds, average ore recovery, internal dilution, mining dilution and other mining parameters set out in the 2016 Technical Report as well as levels of diamond breakage, (iv) receipt of regulatory approvals on acceptable terms within commonly experienced time frames; (v) anticipated timelines for ramp-up and achievement of nameplate capacity at the Renard Diamond Mine, (vi) anticipated timelines for the development of an open pit and underground mine at the Renard Diamond Mine;‎ (vii) anticipated geological formations; (viii) market prices for rough diamonds and their potential impact on the Renard Diamond Mine; (ix) the satisfaction or waiver of all conditions under the Senior Secured Loan and the remaining Equipment Facility to allow the Corporation to draw on the funding available under those financing elements; (x) Stornoway’s interpretation of the geological drill data collected and its potential impact on stated Mineral Resources and mine life; (xi) future exploration plans and objectives; (xii) the Corporation’s ability to meet its Subject Diamonds Interest delivery obligations under the Purchase and Sale Agreement; and (xiii) the continued strength of the US dollar against the Canadian dollar. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward- looking statements as a number of important risk factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates, assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur, including the assumption in many forward-looking statements that other forward-looking statements will be correct, but specifically include, without limitation: (i) risks relating to variations in the grade, size distribution and quality of diamonds, kimberlite lithologies and country rock content within the material identified as Mineral Resources from that predicted; (ii) variations in rates of recovery and levels of diamond breakage; (iii) the uncertainty as to whether further exploration of exploration targets will result in the targets being delineated as Mineral Resources; (iv) developments in world diamond markets; (v) slower increases in diamond valuations than assumed; (vi) risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar; (vii) increases in the costs of proposed capital, operating and sustainable capital expenditures; (viii) increases in financing costs or adverse changes to the terms of available financing, if any; (ix) tax rates or royalties being greater than assumed; (x) uncertainty of results of exploration in areas of potential expansion of resources; (xi) changes in development or mining plans due to changes in other factors or exploration results; (xii)  risks relating to the receipt of regulatory approvals or the implementation of the existing Impact and Benefits Agreement with aboriginal communities; (xiii) the effects of competition in the markets in which Stornoway operates; (xiv) operational and infrastructure risks; (xv) execution risk relating to the development of an operating mine at the Renard Diamond Mine; (xvi) failure to satisfy the conditions to the funding or availability, as the case may require, of the Senior Secured Loan and the Equipment Facility; (xvii) changes in the terms of the Forward Sale of Diamonds, the Senior Secured Loan or the Equipment Facility; (xviii) the funds of the Senior Secured Loan or the Equipment Facility not being available to the Corporation; (xix) the Corporation being unable to meet its Subject Diamonds Interest delivery obligations under the Purchase and Sale Agreement; (xx) future sales or issuances of Common Shares lowering the Common Share price and diluting the interest of existing shareholders; and (xxi) the additional risk factors described herein and in Stornoway’s annual and interim MD&A’s, most recently filed AIF, its other disclosure documents and Stornoway’s anticipation of and success in managing the foregoing risks. Stornoway cautions that the foregoing list of factors that may affect future results is not exhaustive and new, unforeseeable risks may arise from time to time. and (xxi) the additional risk factors described herein and in Stornoway’s annual and interim MD&A’s, most recently filed AIF, its other disclosure documents and Stornoway’s anticipation of and success in managing the foregoing risks. Stornoway cautions that the foregoing list of factors that may affect future results is not exhaustive and new, unforeseeable risks may arise from time to time.


News Article | May 11, 2017
Site: globenewswire.com

Revenue for the first quarter totalled NOK 6.5 billion, an increase of 12% compared with the corresponding quarter of 2016. Profit before tax for the year increased to NOK 60 million from NOK -15 million.The Group had an order backlog of NOK 27.4 billion at the close of the first quarter, up 12% from the beginning of the year. Earnings per share in accordance with the segment accounts was NOK 0.4 (-0.1). " Veidekke has continued the trend we have seen in recent quarters, with growth in both revenue and profit in the first quarter of the year. Order intake in the quarter was good, and the overall order situation is very satisfactory. Construction operations have had a consistently high level of activity throughout the quarter, but most of the profit growth comes from Property Development," says President and CEO Arne Giske. Veidekke's revenue in the first quarter amounted to NOK 6.5 (5.9) billion. Most of the growth is in construction operations in Norway and Denmark and property development operations in Sweden. Profit before tax amounted to NOK 60 (-15) million, and the growth was primarily attributable to increased residential production and higher project contributions from property development operations. Earnings per share in accordance with the segment accounts was NOK 0.4 (-0.1). The Group had an order intake of NOK 9.0 billion in the first quarter, resulting in a total order backlog of NOK 27.4 billion at the close of the quarter. Revenue from Veidekke's construction operations in the first quarter was NOK 5.8 (5.3) billion. This is an increase of 10% compared with the corresponding period last year. Profit before tax amounted to NOK 125 (107) million. Construction operations in Sweden and Denmark showed profit growth for the quarter, while the profit from the Norwegian construction operations was weaker than in the corresponding quarter last year. "Construction operations had growth in both revenue and profit in the first quarter. However, profitability remains low in parts of this business area, and a number of measures have been implemented to improve the situation," says Giske. Revenue from property development operations increased to NOK 725 million from NOK 551 million in Q1 2016. Profit before tax amounted to NOK 135 (55) million. A total of 397 (451) residential units were sold in the quarter, including jointly owned projects. At the end of the quarter, Veidekke had 2,393 units under construction. The overall sales ratio for projects under construction was 91% (93%). "Residential sales got off to a good start in 2017 and are in line with previous quarters. The high sales ratio in the portfolio reflects the strong market and high level of activity in both Norway and Sweden," Giske continues. The winter half of the year is low season in the business area Industrial, and revenue in the first quarter was NOK 477 (439) million. Profit before tax amounted to NOK -183 (-180) million. Veidekke's industrial operations did well in this year's competitive tendering for contracts for the Norwegian Public Roads Administration, with higher volumes than in 2016 and winning almost half of the state asphalt contracts. Veidekke's total lost-time injury (LTI) rate (number of injuries per million hours worked) was 4.2 at the close of the first quarter, down from 4.5 in the previous quarter, but up from 3.9 in Q1 2016. Sickness absence was 4.5% (3.9%) On 20 April an employee of one of Veidekke's subcontractors lost his life while working on a project in Karmøy. A review team has been set up to investigate the accident and identify the cause. For press photos, see www.flickr.com/photos/veidekke for more information, contact: President and CEO Arne Giske, tel. +47 905 89 526, arne.giske@veidekke.no SVP Finance Jørgen G. Michelet, tel. +47 917 43 856, jorgen.michelet@veidekke.no EVP Communications and Public Affairs Lars Erik Lund, tel. +47 413 31 369, lars.lund@veidekke.no Veidekke is one of Scandinavia's largest construction and property development companies. The company undertakes all types of construction and civil engineering contracts, maintains roads and produces asphalt and aggregates. The company is characterised by involvement and local knowledge. Revenue is NOK 30 billion, and half of the 7,400 employees own shares in the company. Veidekke is listed on the Oslo Stock Exchange and has always posted a profit since it was founded in 1936. This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.


News Article | May 11, 2017
Site: globenewswire.com

Revenue for the first quarter totalled NOK 6.5 billion, an increase of 12% compared with the corresponding quarter of 2016. Profit before tax for the year increased to NOK 60 million from NOK -15 million.The Group had an order backlog of NOK 27.4 billion at the close of the first quarter, up 12% from the beginning of the year. Earnings per share in accordance with the segment accounts was NOK 0.4 (-0.1). " Veidekke has continued the trend we have seen in recent quarters, with growth in both revenue and profit in the first quarter of the year. Order intake in the quarter was good, and the overall order situation is very satisfactory. Construction operations have had a consistently high level of activity throughout the quarter, but most of the profit growth comes from Property Development," says President and CEO Arne Giske. Veidekke's revenue in the first quarter amounted to NOK 6.5 (5.9) billion. Most of the growth is in construction operations in Norway and Denmark and property development operations in Sweden. Profit before tax amounted to NOK 60 (-15) million, and the growth was primarily attributable to increased residential production and higher project contributions from property development operations. Earnings per share in accordance with the segment accounts was NOK 0.4 (-0.1). The Group had an order intake of NOK 9.0 billion in the first quarter, resulting in a total order backlog of NOK 27.4 billion at the close of the quarter. Revenue from Veidekke's construction operations in the first quarter was NOK 5.8 (5.3) billion. This is an increase of 10% compared with the corresponding period last year. Profit before tax amounted to NOK 125 (107) million. Construction operations in Sweden and Denmark showed profit growth for the quarter, while the profit from the Norwegian construction operations was weaker than in the corresponding quarter last year. "Construction operations had growth in both revenue and profit in the first quarter. However, profitability remains low in parts of this business area, and a number of measures have been implemented to improve the situation," says Giske. Revenue from property development operations increased to NOK 725 million from NOK 551 million in Q1 2016. Profit before tax amounted to NOK 135 (55) million. A total of 397 (451) residential units were sold in the quarter, including jointly owned projects. At the end of the quarter, Veidekke had 2,393 units under construction. The overall sales ratio for projects under construction was 91% (93%). "Residential sales got off to a good start in 2017 and are in line with previous quarters. The high sales ratio in the portfolio reflects the strong market and high level of activity in both Norway and Sweden," Giske continues. The winter half of the year is low season in the business area Industrial, and revenue in the first quarter was NOK 477 (439) million. Profit before tax amounted to NOK -183 (-180) million. Veidekke's industrial operations did well in this year's competitive tendering for contracts for the Norwegian Public Roads Administration, with higher volumes than in 2016 and winning almost half of the state asphalt contracts. Veidekke's total lost-time injury (LTI) rate (number of injuries per million hours worked) was 4.2 at the close of the first quarter, down from 4.5 in the previous quarter, but up from 3.9 in Q1 2016. Sickness absence was 4.5% (3.9%) On 20 April an employee of one of Veidekke's subcontractors lost his life while working on a project in Karmøy. A review team has been set up to investigate the accident and identify the cause. For press photos, see www.flickr.com/photos/veidekke for more information, contact: President and CEO Arne Giske, tel. +47 905 89 526, arne.giske@veidekke.no SVP Finance Jørgen G. Michelet, tel. +47 917 43 856, jorgen.michelet@veidekke.no EVP Communications and Public Affairs Lars Erik Lund, tel. +47 413 31 369, lars.lund@veidekke.no Veidekke is one of Scandinavia's largest construction and property development companies. The company undertakes all types of construction and civil engineering contracts, maintains roads and produces asphalt and aggregates. The company is characterised by involvement and local knowledge. Revenue is NOK 30 billion, and half of the 7,400 employees own shares in the company. Veidekke is listed on the Oslo Stock Exchange and has always posted a profit since it was founded in 1936. This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.


News Article | May 10, 2017
Site: www.prnewswire.com

SAFARI Montage LOR users will now have Single Sign-On access to Schoology from their dashboard along with the ability to easily add SAFARI Montage learning objects, segments, playlists or lessons to Schoology courses. The integration will also enable co-customers to launch a federated search of the SAFARI Montage LOR directly from within the Schoology interface and embed LOR resources directly within a Schoology course. The partnership was implemented using industry-wide interoperability standards. Both Schoology and SAFARI Montage support and promote IMS Global LTI and OneRoster standards. Support for standards is critical to districts that expect all of their learning tools to work together. "The reality of education today is that teachers are busy and require simple ways to build curriculum, combined with a structured, managed way to deploy assignments to students. Schoology and SAFARI Montage mutual clients can leverage integration to pull together resources from multiple sources and better engage students with the best possible content," said Ryan Hwang, VP of Product from Schoology. "The partnership between Schoology and SAFARI Montage will be a valuable asset to our mutual school district clients that want to advance their personalized learning and competency based education programs." To promote the partnership, Schoology and SAFARI Montage will run demonstrations of the SAFARI Montage LOR in Schoology in both of their respective booths at the upcoming ISTE event in San Antonio on June 26-28. SAFARI Montage's Dr. Tim Clark will also be presenting the new integration at Schoology NEXT, the Schoology user conference to be held in Chicago on July 23-26. For more information on the integration and the partnership between Schoology and SAFARI Montage, please visit www.schoology.com/safari-montage. SAFARI Montage provides K–12 districts with an integrated Learning Object Repository to manage individual digital resources, Video Streaming Library, and IPTV & Live Media Streaming, designed to handle video efficiently. The platform is IMS certified and interoperable with and is the foundation for all major Learning Management Systems. The full suite of integrated modules provides a single interface for users to access and manage all digital, visual resources from within the school district network or from home. SAFARI Montage servers come preloaded with educational video titles tied to the curriculum from the industry's leading video publishers, which include Schlessinger Media, PBS,The History Channel, National Geographic, Scholastic, Disney Education, BBC and more. In addition, school districts can easily upload and manage their own digital content, and disseminate it to all users throughout the school or district. Schoology is putting collaboration at the heart of the learning experience with an easy-to-use learning management system (LMS) that connects the people, content and systems that fuel education. Millions of students, faculty and administrators from over 60,000 K-12 schools and higher education institutions worldwide use Schoology to advance what is possible in education. Find us at www.schoology.com, follow us on Twitter, or join us on Facebook. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/safari-montage-and-schoology-partner-to-simplify-digital-learning-300454700.html

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