Karelian doubles losses as it continues development programme

Diamond exploration company Karelian announced its results for the year to 31 May on Thursday, a year in which the board said “highly encouraging progress” was made towards achieving its objective to discover, or acquire, and develop diamond deposits in Finland.

The AIM-traded firm still recorded no revenue, though there was finance income of €170, down from the €2,937 recorded in 2015.

It had operating expenses of €0.27m, more than the €0.12m last year, resulting in its loss before tax widening to €0.27m from €0.12m.

Karelian’s loss per ordinary share subsequently doubled, to €0.0008 from €0.0004.

During the year, it did acquire the Lahtojoki Diamond Deposit, and was granted a mining permit for it, giving it potential to become a profitable open pit diamond mine.

The Riihivaarä Kimberlite Body was also discovered by the company, and was likely to be diamondiferous.

Its agreement with Rio Tinto was also extended to 2020.

Professor, Chairman, stated:

“I am delighted that the company has made such excellent progress during the year both by the acquisition of the Lahtojoki diamond deposit which could become the first diamond mine in Europe - outside Russia - and by the exploration results,” said chairman Richard Conroy.

“The diamond potential in the Lahtojoki area has been enhanced, post the acquisition, and mineral analysis of the Riihivaarä indicator minerals increases the likelihood that the Riihivaarä kimberlite body is likely to be diamondiferous.”