17:30:10 EDT Thu 28 Mar 2024
Enter Symbol
or Name
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CA



Stornoway Diamond Corp (2)
Symbol SWY
Shares Issued 826,539,837
Close 2016-12-02 C$ 1.00
Market Cap C$ 826,539,837
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Kwantes refreshes Stornoway Diamond buy

2016-12-02 21:52 ET - In the News

James Kwantes, in the Nov. 2, 2016, edition of Resource Opportunities, refreshes his buy of Stornoway Diamond Corp., recently $1.12. Mr. Kwantes previously said buy on May 29, 2016, at 98 cents. A $1,000 investment then is now worth $1,142. Stornoway is aiming to achieve commercial production at its Renard diamond mine in Quebec before year-end. The mine was finished ahead of forecasts and below budget, and Stornoway was even able to schedule its first diamond sale for Nov. 15, two months earlier than expected. Mr. Kwantes applauds the company for making the difficult transition from explorer to producer, even though the process took a toll on its now-"bloated" share count. (Stornoway has 824.9 million shares outstanding.) He is also impressed with the company's newly released cash flow predictions. Net free cash flow is expected to start next year, reach $100-million in 2019 and then reach $150-million in 2021, a level that will be sustained all the way through 2026, claims Stornoway. Mr. Kwantes cautions that production ramp-ups at diamond mines are never a sure thing. If successful, however, the mines can be "fabulously profitable." He seems optimistic that Stornoway's Renard mine will find itself in that happy category.

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