STAR DIAMOND CORPORATION ANNOUNCES SECOND QUARTER 2024 RESULTS
TSX: DIAM
Overview
Star Diamond Corporation is a Canadian natural resource company focused on exploring and developing
The Company also holds a 100% interest in the exploration and evaluation properties and assets of the
Fort à la
On
Star and Orion South Combined Indicated MRE of 2015 and 2024
MRE Year |
Kimberlites |
Total |
Grade |
Total |
Tonnes |
Grade |
Carats |
2015 |
Star & Orion South |
377,184,000 |
14.7 |
55,530,580 |
|
|
|
2024 |
Star & Orion South |
386,186,281 |
18.6 |
71,733,763 |
2 % |
26 % |
29 % |
While there is a relatively small overall increase in tonnage (2%), the significant increases in diamond grade and total carats results from the integration of
On
After the close of the Transaction:
- RTEC owns or controls, in the aggregate, 119,315,222 common shares representing a 19.9% interest in
Star Diamond ; -
Star Diamond has full control and responsibility for the Project and the previous joint venture agreement has been terminated; - RTEC has transferred to
Star Diamond ownership of the trench cutter drill rig used by RTEC to complete its prior bulk sampling program at the Project; - RTEC has transferred to
Star Diamond the Bulk Sample Plant located at the Project, including the TOMRA XRT diamond sorting machine; - RTEC and
Star Diamond have entered into an Investor Rights Agreement whereby, among other things, RTEC was granted certain pre-emptive rights to maintain its 19.9% ownership interest inStar Diamond in connection with future financings undertaken byStar Diamond , and RTEC has agreed to certain standstill protections provided that RTEC will have the right to increase its 19.9% ownership position in the event thatStar Diamond receives an acquisition proposal; and -
Star Diamond has assumed responsibility for all future reclamation activities related to the Project. RTEC has provided onStar Diamond's behalf, for up to five years following closing, letters of credit in aggregate amount of$9.9 million to secure environmental remediation and reclamation activities related to the Project (as security for the letters of credit, RTEC has issued a promissory note toStar Diamond with a face value of$9.9 million which will be extinguished uponStar Diamond securing letters of credit with another party or in performing the reclamation activities).
On
Quarter End Results
For the quarter ended
Year to Date Results
For the six months ended
The increase in exploration and evaluation expenditures for the current year's second quarter and first half versus the comparative periods in 2023 was a result of the Company's acquisition of RTEC's 75% interest in the Project and the assumption of operations. Expenditures incurred during the current periods presented included salaries, site labour and maintenance, site security, environmental compliance costs and contractor costs related to the Star and Orion-South Mineral Resources update.
At
Selected financial highlights include:
Condensed Interim Consolidated Statements of Financial Position |
As at
2024 |
As at
2023 |
Current assets |
$ 1.9 M |
$ 0.6 M |
Property, plant and equipment and Investments |
4.2 M |
0.6 M |
Exploration and evaluation assets |
10.3 M |
0.0 M |
Current liabilities |
0.9 M |
0.9 M |
Non-current liabilities |
7.7 M |
0.1 M |
Shareholders' equity |
$ 7.8 M |
$ 0.2 M |
Condensed Interim Consolidated Statements of Loss |
Three months ended June 30, 2024 |
Three months ended
|
Six months ended June 30, 2024 |
Six months ended
|
Expenses |
|
|
|
|
Loss before undernoted items |
1.5 M |
0.6 M |
2.4 M |
1.2 M |
Unwinding of discounts |
0.1 M |
0.00 M |
0.1 M |
0.00 M |
Investment in Wescan Goldfields Inc. |
0.05 M |
0.3 M |
0.1 M |
0.00 M |
Net loss |
1.6 M |
0.9 M |
2.5 M |
1.2 M |
Net loss per share (basic and diluted) |
$ 0.00 |
|
$ 0.00 |
|
Condensed Interim Consolidated Statements of Cash Flows |
As at June 30, 2024 |
As at June 30, 2023 |
Cash flows used in operating activities |
|
|
Cash flows from in investing activities |
2.6 M |
0.0 M |
Cash flows from (used in) financing activities |
0.7 M |
(0.1) M |
Net increase (decrease) in cash |
1.0 M |
(1.6) M |
Cash – beginning of period |
0.5 M |
2.6 M |
Cash – end of period |
$ 1.5 M |
$ 1.0 M |
Outlook
Fort à la
Subsequent to the successful close of the Agreement with RTEC (see "Corporate Developments"),
About
Technical Information
All technical information in this press release has been prepared under the supervision of
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Caution Regarding Forward-looking Statements
This press release contains "forward-looking statements" and/or "forward-looking information" (collectively, "forward-looking statements") within the meaning of applicable securities legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate" or "believes", or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results, "may", "could", "would", "will", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. All statements, other than statements of historical fact, are forward-looking statements.
These forward-looking statements are based on
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. In addition, forward-looking statements are provided solely for the purpose of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our operating environment. Accordingly, readers should not place undue reliance on forward-looking statements.
Forward-looking statements in this news release are made as of the date hereof and
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