Stornoway Diamond (SWY.TO) which is currently building its Renard diamond project in Canada, has announced a positive update on this project. The ongoing plant engineering has indicated sufficient design efficiencies and cost savings could be generated to offset the additional cost of a large diamond recovery circuit. This would allow the company to recover diamonds of sizes up to 45 millimeters.
Stornoway’s fully funded Renard project should be in production in two years from now and reach commercial production approximately one year later. At this point in time, Stornoway’s Renard is our favorite diamond development project and hopefully the company could soon join the ranks of Lucara Diamond Corp (LUC.TO) and Dominion Diamond Corp (DDC.TO, NYSE:DDC). Meanwhile, Stornoway has also announced it has listed its convertible debt and we’re keeping an eye on these securities as well as it’s a safer way to get exposure to Stornoway (but the upside potential is obviously lower as well).
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Disclosure: The author holds no position in Stornoway Diamond. Please see our disclaimer for current positions.
