stellar
diamonds plc
annual report  accounts 2013
building a leading diamond company in west africa stellar 
diamonds plc
stellar diamonds plc aimstel is a focussed diamond development company 
with highgrade kimberlite assets in west africa the company has established 
a resource base of 4 million carats and is advancing its tongo project through a 
feasibility study in 2014  
the feasibility study work also aims to increase the tongo resource base further and allow the company 
to make a mining decision towards the end of 2014 the company’s strategy remains to become a 
significant diamond producer in the medium term to meet the forecast diamond supply deficit
contents
overview
3 highlights
4 continuing growth of resource base
6 chairman’s statement
business review
7 chief executive officer’s statement
10 diamond market outlook
11 corporate social responsibility  
13 droujba project 
16 tongo project
19 mandala project
governance
20 board of directors
22 key management
 report and financial statements for the year ended 30th june  
 2013  the following pages represent the audited information
24 directors’ report
26 statement of directors’ responsibilities 
financial statements
27 independent auditor’s report to the shareholders of  
 stellar diamonds plc 
29 consolidated statement of comprehensive income 
30 consolidated and company statement of financial   
 position
31 consolidated and company statement of changes in  
 equity 
32 consolidated and company statement of cash flows
33 notes to the financial statements 
stellar diamonds plc
355359 the strand
london wc2r 0hs
united kingdom
company registration number  5424214 
company incorporated on  14 april 2005
wwwstellardiamondscom highlights
droujba
project jorc compliant resource 
increased from 25 to 3million carats 
20
droujba pipe resource of 25million 
carats at a diamond value of 45 per 
carat
katcha dyke resource of 446000 
carats at a diamond value of 57 per 
carat
katcha resource delineated only over 
470m of 5000m strike length to 
150m depth has potential for multi
million carat resource
conceptual economic scoping study 
of droujba pipe shows potential 
for short three year life of mine 
producing 313000 carats and 15m 
revenue at current diamond prices
project placed on temporary care 
and maintenance whilst focus 
remains on tongo and will be re
assessed in 2014 if rough diamond 
prices continue to improve
4 million 
carats
in resource
advancing
high value 
tongo
project 
through 
feasibility
programmes 
to increase
resource 
base in 
tongo
dyke1 jorc compliant resource 
increased from 066 to 1074 million 
carats 63
resource diamond grade and value 
of 120cpht and 248 per carat
dyke4 evaluated at 110cpht and 
140 per carat offering further 
upside in resource
dykes2 and 3 not yet evalutated 
but small testing suggests grades of 
140cpht and 185cpht respectively
positive conceptual economic 
scoping study of tongo dyke
1 project now prioritised and 
advancing to feasibility stage in 2014
us 24m raised in july 2013 to 
progress tongo feasibility study
us 25m spent on evaluation and 
development of tongo and droujba 
projects in the year
operational and administrative cash 
costs reduced significantly
debt free
tongo
financial tongo dyke1 cess
17 year life of mine
modest startup capital of 16 million
peak production of 90000 carats 
per annum
revenues of over 400 million
npv 10 of 53 million
highly leveraged to increasing 
diamond prices 4       annual report  accounts 2013
overview
advancing to 
feasibility study 
at tongo
stellar has a current combined resource base 
of 4 million carats at the tongo and droujba 
projects with the potential to significantly 
increase this through further work on a number of 
diamondiferous kimberlites within the portfolio
economic scoping studies conducted on both 
projects has led stellar to focus in the short term 
on delivering a feasibility study at the 1 million carat 
tongo dyke1 kimberlite during 2014 prior to a 
production decision being made
with an improving diamond market stellar is considering 
resuming mining at its mandala alluvial diamond project as 
well as evaluating a number of new projects to enhance 
its portfolio of assets in west africa the company believes 
there are considerable opportunities in a region that has 
seen very little diamond exploration or development activity 
in the past decade
droujba
location guinea
status completion of 
economic scoping study
a 3 million carat resource has been 
established at the droujba pipe 25mcts 
and the katcha dyke 05mcts both 
droujba and katcha have established 
high grades of 88cpht and 140cpht 
respectively however the diamond values 
45ct and 57ct are relatively low when 
compared to worldwide mine averages 
a conceptual economic scoping study on 
the droujba pipe demonstrated that due 
to there present diamond value only a 
short three year open pit mine is currently 
deemed feasible this mine would yield 
over 300000 carats at a capital cost of 
less than 3million generating cash flows 
of 15million therefore the company has 
placed droujba on care maintenance and 
will review the economics of the project 
as diamond prices continue to increase
katcha holds multimillion carat potential 
since its current 446000ct resource is 
established over only 470m of a 5000m 
strike length to 150m depth further 
drilling and bulk sampling would be 
required to test this when diamond prices 
have improved
tongo
location sierra leone
status moving to feasibility study
dyke1 has an established 1074000 carat 
resource at a high grade of 120cpht and 
excellent diamond value of 248 per carat 
during 2013 a positive economic scoping 
study was delivered on dyke1 which 
demonstrated the potential for a 17 year 
life of mine at an initial capital cost of only 
£16m to produce over 1 million carats and 
revenues of over 400 million
the project has therefore been prioritised 
to a feasibility study during 2014 prior to 
a production decision being made the 
feasibility work will include further detailed 
drilling and bulk sampling of dyke1 
additional resource potential of adjacent  
diamondiferous kimberlites will also be 
tested such as the nearby dyke4 which 
has a grade of 109cpht and diamond value 
of 140 per carat
kono
location sierra leone
status licence dispute care and 
maintenance
stellar continues to persue reinstatement 
of its two kono permits that it believes 
were illegally revoked by the sierra leone 
ministry of mines diplomatic channels are 
continuing to be followed but have so far 
not yielded success
therefore the company is now also 
following legal channels and has 
retained both local sierra leonean and 
international legal counsel these legal 
firms have provided independent opinions 
on the license issue and both concluded 
that the ministry of mines has acted 
outside of its own mining law in revoking 
stellar’s permits stellar is currently 
considering its next steps in the legal and 
diplomatic process in order to protect its 
previous investment on the permits of 
over 20million stellar diamonds plc       5
overview
mandala
location guinea
status production
mining at mandala between 2009 and 
2011 previously yielded 128000 carats 
at an average diamond value of 30 per 
carat some large gem quality diamonds 
up to 37 carats were produced stellar 
has calculated a remaining resource of 
up to 200000 carats predominantly from 
the n’keleyani river valley where average 
diamond grades of 50cpht and diamond 
values of 38 per carat were previously 
achieved
due to the improved rough diamond 
market stellar is currently considering 
funding options to resume mining at the 
mandala mine the five year mining 
licence was also recently renewed to 
enable mining to resume
bouro
location guinea
status license surrendered
during 2013 stellar surrendered the 
bouro diamond licenses although high 
bulk sample grades of 250cpht were 
achieved from the bourno north dyke the 
diamond value was established at only 25 
per carat as the goods were predominantly 
of industrial quality in addition the 
kimberlite proved to be irregular and 
inconsistent along strike which would 
make any future underground mining 
difficult 6       annual report  accounts 2013
overviw
at tongo the jorc compliant diamond resource was increased 
from 660000 carats to 11 million carats through additional 
drilling the diamond grade was confirmed at 120cpht through 
further sampling and the average diamond value modelled at 248 
per carat providing stellar with a very high insitu kimberlite value 
of 298 per tonne
at the droujba project the jorc compliant diamond resource 
was increased from 25 million carats to 31 million carats through 
drilling and sampling a small 700m section of the 5000m long 
katcha dyke which runs adjacent to the droujba pipe the katcha 
dyke has a grade of 140cpht and modelled diamond value of 57 
per carat the project diamond resource could be considerably 
expanded through further dilling and sampling of the katcha dyke 
further bulk sampling of the droujba pipe confirmed a grade of 
88cpht and diamond value of 45 per carat in order to prioritse 
our projects stellar decided to conduct economic scoping studies 
of the existing resources at tongo and droujba projects using 
existing revenues paradigm project management ppm based 
in johannesburg was appointed as independent consultants to 
undertake this work
the conclusion was that the tongo project is currently deemed 
to have better economic potential than the droujba project under 
current market conditions primarily due to the higher diamond 
grade and value of dyke1 compared to the droujba pipe based 
on the work conducted by ppm and extrapolated for the board’s 
assessment tongo has a calculated npv of 53million therefore 
the board decided to prioritise and accelerate the tongo project 
through the feasibility study stage and hopefully towards a 
production decision in the latter part of 2014 although droujba 
has potential for a short term three year open pit mining operation 
producing over 300000 carats a higher diamond price is required 
to make a larger scale mine feasible the company has placed 
droujba on care and maintenance with the economics periodically 
reviewed as the diamond price changes going forward the 
current consensus is that the rough diamond price will increase 
significantly in the next few years and the board believes that 
droujba has the potential to deliver a good return for shareholders
the kono license dispute with the ministry of mines continued 
though little progress has been made towards the reinstatement of 
the two permits that the company believes were wrongly revoked 
legal opinions by local sierra leonean and international based 
lawyers support the company’s position and although the board 
prefers a negotiated settlement it is currently considering its legal 
position in respect of this issue
stellar completed two share placings with new and existing 
shareholders this year raising a total of £26million these funds 
were primarily allocated towards the scoping studies and ongoing 
tongo costs as part of the feasibility study for the year ended 30 
june 2013 the group incurred an operating loss before interest 
tax and impairments of 3m 2012 4m  in addition to this an 
impairment charge of 2m 2012 14m was recognised in the 
year the operating loss is in line with the board’s expectations 
given the group’s stage of development and has been reduced 
steadily over recent years the impairment charge related to the 
droujba project in guinea following the results of the conceptual 
economic scoping study completed in the year and the decision 
to focus on tongo kimberlite project in sierra leone at the balance 
sheet date the group had net assets of 163m and no debt
the rough diamond market continues to show some volatility in 
pricing though a good first half of 2013 was generally reported 
by producers however tight liquidity is an ongoing issue as the 
diamond banks continue to tighten credit lines and a weakening 
rupee has not helped the predominantly indian manufacturers 
nevertheless the fundamentals of the diamond market remain 
robust with a long term supply deficit forecast as rough and 
polished demand is driven by strong growth in chinese and to 
a lesser extent indian and usa diamond jewellery consumption 
although some new diamond mines are coming on stream over 
the next five years these are unlikely to meet the demand growth 
in the longer term and therefore the consensus remains that rough 
prices will significantly increase as a result 
the board believes the next year will be a key milestone in the 
company’s history which will hopefully lead to a positive decision 
in favour of production at the tongo project the board remains 
confident that if the current rough diamond price increases 
with the expected consensus the droujba project will become 
economically viable
i would like to extend my thanks to the continued support of 
shareholders in difficult market conditions your company is well 
positioned to evolve from an exploration to mining company and 
fulfill its strategy of becoming a diamond producer in a market that 
has some of the best economic fundamentals the resource sector 
has to offer i would finally like to thank the stellar management and 
staff for their unwavering commitment to meeting all targets and 
objectives under often very challenging conditions i am confident 
that they will continue to deliver results and with the support of 
shareholders we will take this company to the next level
chairman’s 
statement
dear shareholder
stellar continues to make good progress on 
its strategy of advancing key diamond projects 
towards production this past year we have 
delivered on our objectives of increasing our 
diamond resource base and conducting preliminary 
economic scoping studies at the tongo and 
droujba projects stellar now has a signed off 
inferred resource base of 4 million carats a 29 
increase compared to last year
lord daresbury
nonexecutive chairman
21st november 2013 stellar diamonds plc       7
at tongo the dyke1 resource was increased from 
660000 carats to 1074000 carats 69 through deeper 
drilling and the resource base now extends to 300m 
below surface the high grade and high value of 120cpht 
and 248 per carat were maintained and this demonstrates 
consistency both along strike and at depth of the dyke 
the quality of the dyke1 diamonds is excellent with a very 
high percentage of gems that exhibit shapes and colours 
that will be in great demand when in production
there is also considerable potential to further increase 
the resource base at tongo as we are yet to really test the 
adjacent dykes2 3 and 4 however limited bulk sampling 
at dyke4 this year yielded grades of 109cpht and diamond 
values of 140 per carat so this target is certainly worth 
further attention furthermore previous microdiamond 
sampling at dykes2 and 3 yielded modelled commercial 
diamond grades of 140cpht and 185cpht respectively so 
we have plans to drill test these two kimberlites during our 
next phase of drilling
ce o’s  
statement
tongo 5tph process plant
business review
i am once again very pleased to report that a number of key milestones have been achieved on track and 
within budget our key objectives for this past year were firstly to achieve an increase in our resource 
bases at the tongo and droujba projects which was then followed by the completion of economic 
scoping studies this process has allowed stellar to prioritise the higher value tongo project and focus 
our resources on delivering a full feasibility study during the course of 2014
stellar’s resource base has increased 29 from 31 million carats to 4 million carats and there is potential to significantly 
increase this further through additional drilling of existing and as yet undrilled kimberlites within the project areas
jorc compliant resources 1mm
kimberlite tonnes grade cpht carats value ct insitu value t
tongo 895000 120 1074000 248 298
droujba 3960000 63 2474000 45 28
katcha 319000 14 446000 57 80
total 
resources
5174000 3994000
milestones achieved
∞  increased resource base 9 to 4 million carats
∞  economic scoping studies successfully completed
∞ tongo project prioritised to feasibility stage
∞ maintained excellent health and safety record 8       annual report  accounts 2013
kimberlite strike length m grade cpht value ct
dyke1 2500 120 248
dyke2 800 140 unknown
dyke3 300 185 unknown
dyke4 1000 109 140
at droujba exploration work was limited to the drilling and 
sampling of the 5km long katcha dyke that lies adjacent 
to the droujba pipe although katcha is very extensive in 
strike length drilling only focussed on a 470m section 
near to the droujba pipe and down to a depth of 150m 
bulk sampling was also conducted in this section and the 
sample was processed via the onsite 5tph dms plant 
with diamond recovery by xray flowsort under secure 
conditions
from this work a resource of 446000 carats was obtained 
for a 470m section of katcha to a depth of 150m at a grade 
of 140cpht and diamond value of 57 per carat clearly if 
this resource grade was rolled out to the entire length of 
the katcha kimberlite then a multimillion carat diamond 
resource base can be achieved
bulk sampling of the droujba pipe was also undertaken to 
provide a larger parcel of diamonds for valuation during 
this work 1477 carats were produced at an average 
diamond grade of 100cpht from the hypabyssal kimberlite 
when combined with the previous bulk sampling results an 
average bulk sample grade of 88cpht was realised which 
is significantly higher than the signed off resource grade of 
70cpht for the hypabyssal kimberlite we therefore think 
that the actual grade of droujba is higher than previously 
published it should be noted that large stones of 67 and 
49 carats were produced during this work and although 
they were poor quality stones it does show the potential 
for large stones in the droujba pipe
following on from the resource work we appointed 
independent consulting group paradigm project 
management ppm to conduct economic scoping studies 
at tongo and droujba the objective was to determine 
preliminary economics of the deposits and allow stellar 
the opportunity to prioritise one project into the feasibility 
study stage
droujba 5tph process plant
droujba bulk sampling
droujba plant  pipe
business review
ceo’s statement
continued stellar diamonds plc       9
as you will read in the project sections of this report the 
tongo project at the current time demonstrates superior 
economics and a healthy npv of 53million which is why 
we recently announced the decision to push t ongo dyke1 
towards a full feasibility study this programme to include 
detailed drilling bulk sampling and environmentalsocial 
impact studies is expected to take 12 months to complete 
but at the end of this period we hope to be in a position 
to take a production decision whilst we focus our efforts 
on the tongo project droujba will be placed on care and 
maintenance for the next year
the kono license dispute in unfortunately ongoing both 
diplomatic and legal approaches continue to be followed 
though this has not yet led to the reinstatement of the 
permits local sierra leone and international legal 
opinions clearly show that the licenses were illegally 
revoked by the ministry of mines in sierra leone and 
stellar reserves the right to invoke international arbitration 
if diplomacy continues to be unsuccessful
i continue to believe in a very good outlook for the 
diamond sector since the crisis in 2009 diamond 
prices have recovered strongly and although we have 
seen some volatility in prices this past year the short 
term outlook is for stability and improvement in prices 
into 2014 furthermore although there are a number of 
mines due to enter production over the next five years 
depletion of existing large mines continues as they go 
deeper and underground so  this new production is likely 
to be more than offset by reduction in exiting production 
lines with continued growth of middle class wealth in 
china and india demand for diamond jewellery is set to 
show continued strong growth therefore the forecast of 
demand far exceeding supply of rough diamonds remains 
in place and our strategy of being a significant diamond 
producer in a market of increasing rough prices is the right 
one
our continued project development in pursuit of becoming 
a producer would not be possible without the ongoing 
support of our shareholders through their continued 
support stellar has raised a total of £26million in new 
equity funding over the past 12 months we welcomed a 
new significant shareholder during this process foradex 
invest which now holds a 13 interest in stellar
finally i once again extend my sincere gratitude to 
everyone involved in stellar from our shareholders 
for providing ongoing understanding and support our 
board of directors who provide excellent guidance and 
governance and not least of all our management and 
staff for continuing to deliver on our milestones year 
after year i commend the ongoing dedication and work 
ethic of our teams under challenging economic and 
operational conditions with our tongo project now 
moving through the feasibility stage i feel that the hard 
work and commitment is about to be rewarded with a 
positive production decision by the end of 2014
karl smithson
chief executive officer
business review 10       annual report  accounts 2013
australia 
2 
botswana 
24 
russia 
23 
canada 
16 
south africa 
8 
zimbabwe 
5 
row 
22 
australia 
7 
botswana 
16 
russia 
27 
canada 
8 
south africa 
6 
zimbabwe 
10 
row 
26 
business review
annual rough diamond production in 2012 came in 
at 128 million carats a slight increase on 2011 but still 
considerably lower than the peak production years of 
pre2009 circa 170mcts  it is unlikely that worldwide 
rough production will achieve those precrisis levels again 
in the short term since there are no new major diamond 
discoveries and existing large mines are getting deeper 
or going underground resulting in reduced production  
however bain 2013 reports that 11 new mines generating 
18 million additional carats will come on stream by 2018 
though this will be offset by the declining production from 
older mines
the value of 2012 rough production was 126 billion 
down from 14 billion in 2011 and reflecting a general 
weakening of rough diamond prices in that period  
however this is still some 50 higher than the levels 
seen in 2009 86 bn for a similar volume of rough 
production demonstrating the strong rebound in prices 
since the crisis
although rough prices firmed up in early 2013 the latter 
part of the year saw a general weakening of prices 
due to tighter liquidity conditions of the buyers and 
manufacturers as some diamond banks attempted to 
reduce exposure  furthermore a weakening of the indian 
rupee negatively impacted on the buying capacity of the 
indian manufacturers and resulted in slower demand from 
one of the most important buying markets  
polished prices remained relatively stable in 2013 however 
the margins on polishing remain thin and have caused 
some de beers sight holders not to defer some allocation 
of goods at a number of sights this year  near term rough 
polished prices are expected to remain weak though a 
general improvement is expected in 2014
 going forward industry consultants bain 2013 forecast 
a balanced diamond market over the next four years but 
with a growing supplydemand gap in the longerterm 
post 2018  the group forecast supply growth at 2 per 
year but this will be comfortably outstripped by demand 
growth of 51 to 2013 as chinese and indian middle 
classes continue to grow rapidly in china for example 
bain predicts that the middle class will triple by 2023 and 
rough diamond demand will therefore more than double 
positively impacting on diamond prices
the medium to longer term outlook for rough diamond 
producers therefore remains very positive
diamond market  
outlook
source kimberley process 2013
production mcts production value m
2004 2005 2006 2007 2008 2009 2010 2011 2012
global production ctsm 159 177 176 168 163 125 133 124 128
value us bn 102 116 121 121 127 86 12 144 126 stellar diamonds plc       11
business review
corporate social 
responsibilit y  
stellar continues to invest in its local communities 
within its area of operations working closely with 
the local authorities and civic leaders towards 
identifying and executing specific development 
projects that can provide both immediate and long 
term benefit
kankaylay primary school support
over the past 12 months the tongo project has continued 
to provide financial and material support to the local 
kankaylay primary school last year when the company 
started supporting the school it had 87 pupils this year 
the number has grown to 164
stellar also showed its commitment to supporting sport 
within the local communities by sponsoring soccer matches 
between the villages providing good quality soccer balls to 
the teams and with sponsoring a team during the sierra 
leone 52nd independence day sports meeting
other areas where the company continued to provide 
assistance were with the upkeep of the roads in a 10km 
radius of the project supplying sand  stone to local 
villages for maintaining schools churches  mosques 
and transport through to local hospitals for medical 
emergencies amongst others
in guinea the company continues to support the 
local community mostly by way of upgrading the rural 
infrastructure and specifically the access routes and roads 
using our earth moving equipment during the year main 
road between seredou and bounoudou amounting to 
some 50km of road was repaired and graded either side of 
the rainy season in addition the 9km track to the isolated 
village of namouezou was upgraded thanks to our team 
allowing for ease of commerce and movement of people
class 1  2013
classroom materials for 2013
the new river crossing into sanjama 
handing over soccer balls 12       annual report  accounts 2013
business review
grading and repairing the local a local road newly upgraded by stellar
grading and repairing the local roads project geologist abdoulaye diallo with the thankful community of namouezou stellar diamonds plc       13
droujba kimberlite pipe  
katcha kimberlite dyke
the droujba project 
resource was 
increased by 20 from 
25 million carats to 3 
million carats primarily 
through the addition of 
05 million carats from a 
short section of the 5km 
long katcha dyke  
a conceptual economic 
scoping study was 
completed on the upper part 
of the droujba pipe which showed 
that under current diamond prices 
a three year open pit mine producing 
over 300000 carats would deliver 
profitable revenues of 15m 
however although the droujba project 
has considerable upside potential at a 
higher diamond price it was decided to 
place the project under temporary care 
and maintenance whilst tongo is advanced 
through the feasibility study stage
resource drilling programme
stellar has focussed on drilling the droujba pipe and 
adjacent katcha kimberlite dyke over the past twelve 
months  a total of 8867m has been drilled in this 
programme and the droujba pipe has been intersected 
as deep as 414m vertically below surface where the pipe 
remains open at depth  drilling of katcha comprised 
seven holes along a 500m strike length of the dyke near 
to the droujba pipe the deepest intersection being 134m 
below surface
the drilling has proven the depth extent of droujba and 
the significant potential for the 5km long katcha dyke to 
add considerable tonnage to the overall droujba resource 
base  further drilling will be required along katcha to 
confirm this
business review 14       annual report  accounts 2013
droujba pipe bulk sampling and diamond valuation
a summary of the phase1 and 2 bulk sampling results at droujba show that the average grade achieved is 89cpht see 
table
sample number dry tonnes 
processed
recovered 1mm dry grade 
cpht
largest stone 
carats
dbs14 ph1 average 93868 66955 7133 1380
dbs5 24460 17120 6999 760
dbs6 23914 23270 9731 955
dbs7 25736 27030 10503 4920 estimated
dbs8 26996 26470 9805 1115
dbs9 28833 23865 8277 345
dbs10 18302 29985 16383 670 estimated
dbs510 ph2 average 148241 147740 9966 670 estimated
average ph1 and ph2 242106 214695 8868 670 estimated
although the updated surface bulk sample grade has increased from 71cpht to 88cpht the droujba pipe resource grade 
remained at 70cpht as modelled in march 2012 using spatially more representative microdiamond data that was available 
for the resource at depth 
the previous diamond parcel of 506 carats and recent diamond parcel of 1461 carats were valued by three independent 
diamond valuators in antwerp in late 2012 the 506 carat parcel was valued at between 39 and 52 per carat whereas 
the 1461 carat parcel was valued at between 24 and 46 per carat the two parcels combined had a modelled value of 
between 30 and 45 per carat average of 38 per carat the lower average value as compared to march 2012 50ct 
is due to a weaker rough diamond market and paucity of larger gem stones in both parcels valued 
katcha dyke bulk sampling and diamond valuation
bulk sampling and drilling of a 475m section of the 5km long katcha dyke was previously reported by stellar at a grade 
of 161cpht  however this was not converted into a resource at the time of the last annual report and it was one of the 
stated objectives of the company for this year 
using the katcha microdiamond data and bulk sample results cae mining modelled the diamond grade by plotting 
cumulative size distribution log probability and total diamond content curves at a cut off of 10mm the insitu 
modelled diamond grade for the kimberlite is calculated to be 140cpht 
the 477 carat parcel of katcha diamonds was valued by three independent valuators in antwerp at between 35 and 65 
per carat with a modelled value of between 40 and 55 per carat average 475 per carat 
revised resource statement
during this year cae mining updated the droujba resource statement to include 446000 carats defined in the 475m 
section of katcha utilising the bulk sampling and microdiamond data the company considers that the full 5000m strike 
of katcha could host a multimillion carat resource based on the resource generated from approximately one tenth of 
the kimberlite strike length
although the phase2 droujba bulk sampling yielded a grade of 100cpht which when combined with the phase1 results 
gave an average grade of 89cpht cae mining still modelled the resource grade at 70cpht based on the microdiamond 
results  
therefore the overall droujbakatcha resource increased only 20 to just under 3 million carats see table
business review stellar diamonds plc       15
droujba kimberlite 
pipe 
depth mamsl tonnes grade cpht carats
hypabyssal 540 to 380 1700000 70 1190000
30–190m depth
kimberlite breccia 540 to 380 240000 35  84000
hypabyssal 350 to 170 1400000 70
210–360m depth
kimberlite breccia 350 to 170 620000 35 220000
total droujba 3960000 63 2474000
katcha kimberlite 
dyke
475m strike length to 150m depth 319000 140 446000
total droujba and 
katcha
4279000 68 2920000
conceptual economic scoping study
in early 2013 stellar appointed independent consultants paradigm project management ppm to conduct a conceptual 
economic scoping study  
the scoping study undertaken by ppm focussed on the open pit potential of the droujba pipe only this approach was 
taken as based on the relatively small surface area and limited near surface tonnes however a large stripping ratio 
would be necessary to mine to any considerable depth which in the opinion of ppm rendered the project uneconomic 
under current diamond prices  
the economic scoping study from ppm however outlined a three year life of mine open pit opportunity at a 11 stripping 
ratio to mine over 313000 carats utilising mainly existing plant and mining infrastructure at potentially economic 
margins 
utilising stellar’s own infrastructure and for an additional capital cost of 3m the mine could produce 400000 tonnes of 
kimberlite and 400000 tonnes of waste over three years generating revenues of 154 million 
care and maintenance
although a short term profitable mining operation is indicated by the scoping study stellar decided to place the project 
under temporary care and maintenance and focus on its tongo project
it is clear that the relatively low diamond price at droujba renders a larger scale mine uneconomic at current prices  
however as the diamond market continues to improve stellar will revisit the economics of the droujba mine and also 
look towards significantly increasing the project resource through further work on the extensive and high grade katcha 
kimberlite  
business review stellar diamonds plc       16
tongo
during the year the tongo jorc 
compliant inferred resource was 
increased from 660000 carats 
to 1074000 carats 63  
the resource grade was 
maintained at 120cpht 
with a modelled average 
diamond value of 248 
per carat giving an insitu value 
for the kimberlite ore of 297 per 
tonne
following on from the upgrade in 
resource a conceptual economic scoping 
study was completed with positive results  
a 17 year life of mine model was established 
showing diamond revenues of over 400 million 
and a npv of 53 million
the tongo project has now been advanced to the 
feasibility stage and 2014 will see further detailed 
work being conducted with the objective of 
delivering a bankable feasibility study on which to 
base a production decision
 
licence tenure 
el482012 is currently in its second year of a five year exploration tenure  the 
company has the right to request a licence upgrade to a mining lease upon 
delivery of a feasibility study as provided for by the mineral act of 2009
upgraded diamond resource statement
towards the end of 2012 stellar received an updated jorc compliant 
inferred resource statement from cae mining  this was based on extensive 
geological work which included  
• 43 core holes drilled along the 25km long dyke1
• holes drilled to intersect the kimberlite at a depths of 50m   
 100m 150m 200m or 300m from surface
• microdiamond results from 400kg of kimberlite collected   
 from near surface of dyke1
• microdiamond results from 14822kg kimberlite collected   
 from drill core at various depths and along strike    
 intersections of dyke1
• a 94875 tonne kimberlite surface bulk sample collected   
 from a 60m long trench of dyke1 1mm grade of 121cpht
• valuation estimates of 1143 carats of diamonds 10mm   
 recovered from the dyke1 bulk sample
• bulk densities collected from numerous kimberlite and   
 country rock samples
business review
drilling at tongo financial statements
17       annual report  accounts 2013
using the datamine studio 3 
software all drilling information was 
collated the volume of kimberlite 
calculated and a block model 
defined using a specific gravity of 
279gcm3 the total revised inferred 
resource of 895000 tonnes was 
calculated for dyke1 down to a 
depth of 300m from surface the 
deepest drill intersection of the 
kimberlite resource was 347m 
below surface
the diamond grade model was 
based on microdiamond data and 
bulk sample results at a cut off of 
10mm the modelled diamond 
grade was estimated at 120cpht 
the bulk sampled grade was 
121cpht 
the diamond value was modelled in march 2012 using the three exports that comprised the 1143 carats produced 
from the bulk sampling these diamond parcels were valued during 2011 and 2012 and the values were combined and 
modelled to simulate the likely diamond value in a full production parcel at a cut off of 10mm the diamond value was 
modelled at between 225 and 270 per carat midrange of 248 per carat 
a summary of the declared inferred resource is shown below
tongo dyke1 maiden resource mar12 upgraded resource nov12
tonnes 550000 895000
grade cpht 120 120
carats in resource 660000 1074000
diamond value lower usct 225 225
diamond value mid usct 2475 2475
diamond value upper usct 270 270
 per tonne insitu at average 2475ct value 297 297
dyke1 geological model
a robust three dimensional 
wire frame geological model 
has been derived from the 
drilling which was used 
to calculate the volume 
and tonnage of kimberlite 
available for the portion of 
dyke1 drilled the figure 
below shows a summary of 
the geological model from 
this it was calculated that 
895000 tonnes of kimberlite 
is contained along a 19km 
strike of dyke1 to a depth of 
300m below surface
business review 18       annual report  accounts 2013
business review
dyke1 conceptual economic scoping study
in early 2013 stellar engaged paradigm project management ppm to conduct an economic scoping study on the 1 
million carat dyke1 diamond resource
the scoping study by ppm focussed on approximately 682000 carats 
of the dyke1 resource to a depth of 300m from surface over an 
initial 13 year life of mine  ppm initially propose a decline access to 
provide early access to production ore which would then be followed 
by the sinking of a shaft to 300 metres to gain access to ore on levels 
approximately 40m apart ppm has estimated that the life of mine 
capital requirement at tongo would be 2142 million with the life of 
mine operating costs estimated at 84 per tonne 
ppm has estimated in their report that the aggregate life of mine gross 
revenues from tongo would be 1692 million with a net present value 
attributable to tongo assuming a discount rate of 10 per cent of 
162 million  the 13 year life of mine model undertaken by ppm was 
not inflated for cost or diamond prices
stellar has used the base case model produced by ppm and increased the 
life of mine to 17 years to achieve mining of approximately 1051000 carats 
of the existing inferred resource which the directors believe is achievable 
at tongo  in addition a 45 per cent nominal price inflation to operating 
costs and diamond prices for the 17 year life of mine has been applied to 
the model  applying these assumptions to the ppm analysis provides life 
of mine gross revenues of approximately 4127 million and a net present 
value attributable to tongo assuming a discount rate of 10 per cent of 
531million 
a comparison of the ppm model and the director’s model is shown below
tongo dyke1 ppm model noninflated director’s model 
costs and diamond prices inflated at 45 pa
life of mine years 13 17
tonnes mined 1131558 1738000
carats recovered 682338 1051000
starting diamond price ct 248 248
life of mine capital costs m 2142 3027
life of mine cost per tonne  84 122
life of mine gross revenues m 16922 41269
life of mine net cash inflows m 525 1700
net present value at 10 discount rate m 162 531
irr pretax 23 32
following completion of the economic scoping study on dyke1 the company decided to prioritise the development of the tongo 
project and advance dyke1 to the feasibility stage of development during 2014
future work and additional resource potential
the 1074000 carat resource of dyke1 is being advanced through the feasibility stage  this will include further detailed 
drilling to bring the resource from inferred to indicated category as well as additional bulk sampling to obtain a 2000 carat 
diamond parcel for further diamond value modelling 
there is additional resource potential from dyke1 and other kimberlites in the licence area as follows
• deeper drilling of dyke1 to depths of up to 700m in line with kimberlite dykes mined in south africa
• resource drilling of dyke4 which has a bulk sampled grade of 109cpht and an average diamond value of 140  
 per carat giving an insitu value of 154 per tonne  an initial 500000 carat resource will be targeted from dyke4
• drilling of the 800m long dyke2 located 200m to the north of dyke1 a 200kg microdiamond sample   
 previously collected by stellar yielded 345 diamonds which gave a modelled diamond grade of 140cpht at  
 1mm recovery 
• drilling of dyke3 located 500m to the northwest of dyke1  a 200kg microdiamond sample previously   
 collected by stellar yielded 756 diamonds which gave a modelled diamond grade of 185cpht at a 1mm recovery 19       annual report  accounts 2013
mandala
between 2009 and 2011 stellar produced 128000 carats 
at an average grade of 33cpht at mandala and diamond 
value of 31 per carat generating 4m in revenues 
the project yielded a number of gem quality diamonds 
including a fancy yellow stone of 37 carats that was 
valued at 150000 the overall low average price 
realised reflected the prevailing weak rough diamond 
market at the time and the lower quality smaller stones 
the mine was therefore placed on temporary care and 
maintenance in 2011 pending an improvement in the 
market conditions and outlook
volume m3 tonnes carats grade ct
m3
grade cpht 
 18mm
sales
us m
average
value
ct
total 227479 409463 127989 056 33 4 31
revised mandala diamond 
resource
stellar is currently considering funding 
options at the project level to reopen 
the mandala mine an independent 
resource not in accordance with 
the jorc code for the mine has 
been calculated at approximately 
135000 carats the majority of this 
diamond resource is located within 
the n’keleyani river valley where 
previous mining by stellar yielded 
average diamond grades of over 
50cpht and up to 100cpht in some 
areas  based on potential extensions 
to these diamondiferous gravel 
horizons stellar is targeting a resource 
of approximately 200000 carats at 
mandala
business review 20       annual report  accounts 2013
governance
board of 
directors
lord daresbury  nonexecutive chairman
peter daresbury has held numerous executive positions including ceo 
from 1997 to 2000 of the greenalls group which had an annual turnover 
of £983 million and a ftse 100 market capitalisation of £17 billion in 2000 
the company was renamed the de vere group plc and peter daresbury 
became nonexecutive chairman until he stood down in 2006 peter 
daresbury has also served as nonexecutive chairman of kazakhgold group 
ltd from 2005 to 2007 and executive chairman of highland gold from 2002 
to 2004 peter is currently chairman of aim quoted nasstar plc aintree 
racecourse company ltd mallett plc and north west business finance ltd a 
new private venture capital and loan fund vclf for the northwest current 
directorships include bespoke hotels ltd rusant ltd and in addition since 
2005 peter has been a member of the fleming family and partners private 
equity investment committee
karl smithson  chief executive officer
karl smithson was appointed as stellar’s chief executive officer with effect 
from 1 january 2007 having built the portfolio of stellar’s assets within mano 
river resources since 2000 he led the listing of stellar on aim through a 
reverse takeover of west african diamonds and has over the years successfully 
raised over £25 million in equity funding for stellar 
karl has 24 years of resource sector experience gained with a number of 
companies in senior management positions including de beers 10 years 
southernera diamonds 2 years and mano riverstellar 11 years karl’s 
working career has been focussed on diamond exploration and development 
in africa and he has been responsible for a number of new diamond discoveries 
in botswana zimbabwe sierra leone and liberia karl is a geology graduate 
of kingston university in the uk he completed his mba with distinction in 
2006 at the graduate school of business in cape town south africa and was 
awarded with the old mutual gold medal 
james campbell  nonexecutive director
james campbell is currently chief executive officer and president of 
rockwell diamonds inc prior to this he was vice president  new business 
for lucara diamond corp following lucara’s acquisition of african diamonds 
plc where he was managing director for four years
preceding this james was with de beers for over twenty years culminating 
in being general manager responsible for advanced exploration and resource 
delivery in the global mining and exploration group during his career with 
de beers he also led a number of diamond exploration and evaluation 
programmes and smallscale mine development as well as being involved 
in corporate and strategic management and being nicky oppenheimer’s 
personal assistant 
james holds a degree in mining  exploration geology from the royal school 
of mines imperial college london university and an mba with distinction 
from durham university james is a fellow of the institute of mining 
metallurgy  materials chartered engineer uk chartered scientist uk a 
professional natural scientist rsa and a member of the institute of directors 
of south africa he is also a director of bugeco sa and swala resources plc stellar diamonds plc       21
governance
luis da silva  nonexecutive director
luis is ceo of tsxvaim listed afferro mining inc tsxvlse aff an iron 
ore explorerdeveloper in liberia and cameroon he gained his extensive 
international experience with multinationals lafarge sa and blue circle 
industries plc before joining the current company in 2007 luis is a graduate 
mining engineer from camborne school of mines and read for his mba at the 
cranfield school of management additionally luis serves as a nonexecutive 
director of aureus mining inc tsxlse aue a gold development company 
in west africa born out of the african aura split in april 2011
steven poulton  nonexecutive director
steven poulton holds an honours degree in geology from the university 
of southampton 1997 and a masters degree in mining geology from the 
camborne school of mines 1998 he is the chief executive and cofounder 
2007 of altus strategies ltd a private natural resource company and a 
director of its subsidiaries altus capital ltd the investment manager of altus 
resource capital ltd lsearcl arabian gold corporation plc aluvance 
plc and altau gold plc steven was a cofounder and director of african aura 
mining inc which in 2011 demerged its assets to create aureus mining inc 
aim  tsx aue and afferro mining inc aim  tsxv aff steven is a fellow 
of the geological society of london and a fellow of the institute of materials 
minerals and mining
dr markus elsässer  nonexecutive director
dr elsässer is a german financier and investor in the mineral resources 
industry he is head of the elsässer family office ‘m elsässer  cie ag 1971′ 
in dusseldorf germany he is a nonexecutive board member of arctic gold 
ab an exploration and mine development company listed in sweden kopy 
goldfields ab stockholmsweden an exploration company gold listed 
on the nasdaq omx first north in stockholmsweden impact minerals 
limited an exploration company listed on the asx and of stellar resources 
limited  a tin exploration company listed on the asx in australia dr elsässer 
was previously a director of finance at the dow chemical company in 
germany and he has extensive general management experience with former 
appointments in australia and singapore in the chemical and food industries 
dr elsässer has a degree and phd in business administration from cologne 
university germany 22       annual report  accounts 2013
key
management
rowan carr  chief operations officer
rowan graduated with a masters in mineral exploration from imperial college london 
and has 25 years of diamond industry experience throughout africa he spent 20 
years working for de beers in senior management positions heading up exploration 
efforts in botswana south africa angola dr congo guinea and the central african 
republic rowan joined stellar in 2007 and has been at the forefront of project 
exploration and development on the ground and has overseen the successful delivery 
of maiden resource statements for droujba and tongo
philip knowles  chief financial officer
philip joined stellar in june 2011 he is a qualified accountant having gained 
membership to the acca in 2004 and holds a ba hons in accounting and finance 
from exeter university philip has over 10 years of accountancy experience working 
for a wide range of businesses while in practice and most recently was group 
financial controller for firestone diamonds plc and for kopane diamonds plc prior 
to firestone’s takeover of kopane and brings with him strong experience of working 
for growing diamond mining companies philip is based in our london office but 
travels regularly to the company’s assets in guinea and sierra leone
alkaly yansane  country representative guinea
alkaly yansane is a guinean national with a usa university degree in geology he was 
the director of the cpdm in conakry for a number of years responsible for many 
aspects of the mineral sector yansane has also worked for 17 years in the private 
sector of the exploration and mining industry with rio tinto west african diamonds 
and now stellar diamonds where he holds the position of company representative 
in conakry
kassim mansaray  senior geologist sierra leone
kassim is a qualified geologist with a masters from moscow russia kassim has over 
30 years of industrial experience having started work in the geological survey of 
sierra leone and working on a number of project evaluations in the country he 
brings a vast wealth of multicommodity experience having worked in sierra leone 
liberia guinea gabon and the central african republic having spent the past 16 
years with the mano riverstellar diamonds group of companies
governance stellar diamonds plc       23
graham radburnd  tongo project manager
graham’s early career was focused in the civil construction sector in africa and 
the middle east he also brings 14 years of diamond industry experience in both 
production and management roles in angola dr congo russia guinea and sierra 
leone graham has been managing a number of stellar’s mining and development 
projects since joining the company in 2008 and is currently project manager for 
tongo
fodé camara  administration manager
fodé is a guinean national with a degree in geology from the university of conakry 
he has 16 years diamond industry experience 12 of which was with de beers in 
senior positions in guinea south africa botswana zimbabwe madagascar gabon 
and dr congo fodé joined stellar in 2008 becoming mandala project manager by 
2010 currently he coordinates stellar’s activities in guinea from our conakry office
abdoulaye diallo  senior geologist droujba project
abdulaye is a guinean national with a degree in mining geology from the university 
of boke after an early career in construction he joined mano river resources as 
project geologist exploring for gold and diamonds in guinea sierra leone and 
liberia abdulaye continued this work with stellar diamonds from 2007 and is 
currently responsible for the geological evaluation and resource estimation activities 
for the droujba project
sulaiman swaray  senior geologist tongo project
sulaiman is a sierra leone national with a degree in geology from fourah bay 
university in freetown after two years in the national statistics office he joined 
stellar in 2004 and was project geologist in a regional diamond exploration joint 
venture with bhp billiton this led to the discovery and development of the tongo 
kimberlites where sulaiman is now project geologist for the resource estimation 
programme
edwin castello  chief metallurgist
edwin joined stellar diamonds in may 2009 as process plant supervisor to the 
mandala alluvial diamond mining operation having worked previously in the 
philippines indonesia singapore angola and the drc edwin brings with him 
over 16 years of technical  process experience the latter years being within the 
diamond sector in africa with his indepth knowledge of dms and flowsort edwin 
has recently been instrumental in the efficient treatment of multiple bulk samples 
through both the tongo and droujba sample processing plants
governance 24       annual report  accounts 2013
going concern
information in relation to going concern is disclosed in note 12 of the 
financial statements 
charitable and political contributions
the group made no political or charitable contributions during the 
year
directors
during the year under review the following directors held office
 appointed to the board on 22 november 2012
on 25 june 2013 narjess naouar resigned as company secretary and 
philip knowles was appointed as company secretary
directors’ interests
the directors’ interests in the ordinary shares of the company as of 30 
june 2013 are disclosed in note 17 of the financial statements  
substantial shareholdings
at 23 october 2013 so far as the company is aware the only holdings 
of 3 or more in the issued share capital are
foradex invest srl 1318
ubs deutschland 1301
nassim funds 896
aureus mining inc 625
hottinger adam  co 500
blackrock investment management uk limited 393
barclayshare stockbrokers limited 393
risks and uncertainties
the realisation of exploration and evaluation assets is dependent on 
the discovery and successful development of economic reserves 
including the ability to raise finance to develop future projects should 
this prove unsuccessful the value included in the balance sheet would 
be written off to the statement of comprehensive income significant 
potential risks to the value included in the balance sheet include
the directors submit their report and the 
consolidated financial statements for stellar 
diamonds plc the “company” or “stellar” or 
on a consolidated basis the “group” for the 
year ended 30 june 2013  
principal activities business review 
and future developments
the principal activity of the company is 
that of diamond development in west 
africa
no dividends have been paid or are proposed 
for the year 2012 nil 
a review of the significant developments and 
operating results of the group as well as the 
business environment future prospects and 
the main trends and factors that are likely to 
affect the future development performance 
and position of the group’s business are 
contained in the chairman’s statement
key performance indicators
given the early stage nature of the group’s 
kimberlite portfolio the directors are of the 
opinion that analysis using financial kpis 
is not appropriate for an understanding of 
the development performance or position 
of the business at this time
however the directors constantly review 
the planned exploration and evaluation 
expenditure and general operating costs 
to ensure that cash resources are available 
prior to commitment to this expenditure
in addition to the above the board also 
considers nonfinancial factors such as 
the group’s compliance with corporate 
governance guidelines for aim companies 
and compliance with environmental 
rehabilitation and other legislation within the 
group’s areas of operations
share capital
on 24 october 2012 a total of 10828750 
ordinary shares of 1p each were allotted and 
issued for gross proceeds of 553961
on 5 february 2013 a total of 41960640 
ordinary shares of 1p each were allotted and 
issued for gross proceeds of 1743771
directors’ report
lord daresbury
nonexecutive chairman
n karl smithson 
chief executive officer
james campbell 
nonexecutive director
luis guilherme cabrita da silva
nonexecutive director
steven j poulton 
nonexecutive director
dr markus elsasser 
nonexecutive director
governance stellar diamonds plc       25
• foreign investment risks including increases in taxes 
royalties and renegotiation of contracts
• liquidity risks
• funding risks
• going concern and
• operational and environmental risks
• price fluctuations
• foreign exchange risks
• uncertainties over development and operational 
costs
• political and legal risks including arrangements 
with governments for licenses profit sharing and 
taxation
supplier payment policy
the group’s policy is to settle terms of payment with suppliers when agreeing the terms of each transaction ensure that 
suppliers are made aware of the terms of payment and abide by the terms of payment  trade creditors of the group at 30 
june 2013 were equivalent to 20 2012 20 days purchases
property plant and equipment
details of the group’s property plant and equipment is set out in note 11 to the financial statements 
employee consultation
the group places considerable value on the involvement of its employees and has continued to keep them informed on 
matters affecting them as employees and on the various factors affecting the performance of the group this is achieved 
through formal and informal meetings 
financial risk management
details of the group’s financial risk management policies are set out in note 18 to the financial statements
corporate social responsibility
the group is subject to best practice standards and extensive regulations which govern environmental protection the 
group is committed to uphold these standards and regulations as a minimum and to keep these important matters under 
continuous review when appropriate adequate action and provision is immediately taken to ensure full compliance with 
the standards expected of an international exploration and development company
in particular the group aims to provide employees with a healthy and safe working environment whilst receiving payment 
that enables them to maintain a reasonable lifestyle for themselves and their families
the group works towards positive and constructive relationships with government neighbours and the public ensuring 
fair treatment of those affected by the group’s operations 
subsequent events
details of significant post balance sheet events affecting the group and company are set out in note 19 to the financial 
statements 
auditors
each of the persons who is a director at the date of approval of this report confirms that
1 so far as the director is aware there is no relevant audit information of which the company’s auditors are unaware and
2 the director has taken all the steps that heshe ought to have taken as a director in order to make himselfherself  
  aware of any relevant audit information and to establish that the company’s auditors are aware of that information
this confirmation is given and should be interpreted in accordance with the provisions of s418 of the companies act 
2006
a resolution to reappoint deloitte  touche will be proposed at the forthcoming annual general meeting
approved by the board on 21st november 2013 and signed on its behalf by
n karl smithson lord daresbury
governance 26       annual report  accounts 2013
statement of 
directors’ 
responsibilities 
the directors are responsible for preparing the annual report and the financial statements in accordance with applicable 
law and regulations
company law requires the directors to prepare financial statements for each financial year the directors are required to 
prepare the financial statements in accordance with international financial reporting standards ifrss as adopted by the 
european union under company law the directors must not approve the financial statements unless they are satisfied that 
they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period 
in preparing these financial statements international accounting standard 1 requires that directors
• properly select and apply accounting policies
• present information including accounting policies in a manner that provides relevant reliable comparable and 
understandable information
• provide additional disclosures when compliance with the specific requirements in ifrss are insufficient to enable 
users to understand the impact of particular transactions other events and conditions on the entity’s financial 
position and financial performance and
• make an assessment of the company’s ability to continue as a going concern
the directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 
company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 
enable them to ensure that the financial statements comply with the companies act 2006 they are also responsible for 
safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud 
and other irregularities
the directors are responsible for the maintenance and integrity of the corporate and financial information included on the 
company’s website legislation in the united kingdom governing the preparation and dissemination of financial statements 
may differ from legislation in other jurisdictions
governance financial statements
stellar diamonds plc       27
independent auditor’s 
report to the 
shareholders of 
stellar diamonds plc 
we have audited the financial statements of stellar diamonds plc for the year ended 30 june 2013 which comprise 
the consolidated statement of comprehensive income consolidated and company statement of financial position 
consolidated statement of changes in equity company statement of changes in equity consolidated and company 
statement of cash flows and the related notes 1 to 19  the financial reporting framework that has been applied in their 
preparation is applicable law and international financial reporting standards ifrss as adopted by the european union 
and as regards the parent company financial statements as applied in accordance with the provisions of the companies 
act 2006
this report is made solely to the company’s members as a body in accordance with chapter 3 of part 16 of the 
companies act 2006  our audit work has been undertaken so that we might state to the company’s members those 
matters we are required to state to them in an auditor’s report and for no other purpose  to the fullest extent permitted 
by law we do not accept or assume responsibility to anyone other than the company and the company’s members as a 
body for our audit work for this report or for the opinions we have formed
respective responsibilities of directors and auditors
as explained more fully in the statement of directors’ responsibilities the directors are responsible for the preparation 
of the financial statements and for being satisfied that they give a true and fair view  our responsibility is to audit 
and express an opinion on the financial statements in accordance with applicable law and international standards on 
auditing uk and ireland  those standards require us to comply with the auditing practices board’s ethical standards for 
auditors
scope of the audit of the financial statements
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give 
reasonable assurance that the financial statements are free from material misstatement whether caused by fraud or error  
this includes an assessment of whether the accounting policies are appropriate to the group’s and the parent company’s 
circumstances and have been consistently applied and adequately disclosed the reasonableness of significant accounting 
estimates made by the directors and the overall presentation of the financial statements  in addition we read all the 
financial and nonfinancial information in the reports and financial statements for the year ended 30 june 2013 to 
identify material inconsistencies with the audited financial statements  if we become aware of any apparent material 
misstatements or inconsistencies we consider the implications for our report
opinion on financial statements
in our opinion
• the financial statements give a true and fair view of the state of the group’s and of the parent company’s affairs as at 
30 june 2013 and of the group’s loss for the year then ended
• the group financial statements have been properly prepared in accordance with ifrss as adopted by the european 
union
• the parent company financial statements have been properly prepared in accordance with ifrss as adopted by the 
european union and as applied in accordance with the provisions of the companies act 2006 and
• the financial statements have been prepared in accordance with the requirements of the companies act 2006 financial statements
28       annual report  accounts 2013
emphasis of matter
in forming our opinion on the financial statements which is not modified we have considered the adequacy of the 
disclosure made in
• notes 8 9 11 and 12 to the financial statements concerning the valuation of intangible and tangible assets the 
recoverability of amounts due from subsidiaries and the recoverability of investments in subsidiaries the realisation 
of intangible assets of 13663445  and property plant and equipment of 3278294 included in the consolidated 
statement of financial position and intangible assets of 1302561 investment in subsidiaries of 4157484 
and amounts due from subsidiaries of 11083731 included in the company statement of financial position are 
dependent on a satisfactory outcome to the licence dispute disclosed in note 8 and on the discovery and successful 
development of economic mineral reserves which are subject to a number of uncertainties including the group’s 
ability to raise sufficient finance to develop the projects the financial statements do not contain any adjustments 
relating to these uncertainties and the ultimate outcome cannot at present be determined 
• note 12 to the financial statements concerning the group’s ability to continue as a going concern the group 
incurred a loss for the year of 4998492 and had net current liabilities of 512111 at the balance sheet date this 
indicates the existence of a material uncertainty which may cast significant doubt on the ability of the company 
and the group to continue as a going concern the going concern assumption of the group is dependent on the 
group obtaining additional finance to meet its working capital needs for a period of not less than 12 months after 
the date of approval of the financial statements  on the basis that additional finance can be obtained the directors 
have prepared the financial statements of the group on the basis that the group is a going concern the financial 
statements do not include any adjustments to the carrying amount or classification of assets and liabilities that would 
occur if the group or company was unable to continue as a going concern
separate opinion in relation to ifrss as issued by the iasb
as explained in note 1 to the group financial statements the group in addition to complying with its legal obligation to 
apply ifrss as adopted by the european union has also applied ifrss as issued by the international accounting standards 
board iasb
in our opinion the group financial statements comply with ifrss as issued by the iasb
opinion on other matter prescribed by the companies act 2006
in our opinion the information given in the directors’ report for the financial year for which the financial statements are 
prepared is consistent with the financial statements
matters on which we are required to report by exception
we have nothing to report in respect of the following matters where the companies act 2006 requires us to report to you 
if in our opinion
• adequate accounting records have not been kept by the parent company or returns adequate for our audit have not 
been received from branches not visited by us or
• the parent company financial statements are not in agreement with the accounting records and returns or
• certain disclosures of directors’ remuneration specified by law are not made or
• we have not received all the information and explanations we require for our audit
independent auditor’s report 
to the shareholders of stellar 
diamonds plc continued 
kevin sheehan
senior statutory auditor
for and on behalf of deloitte  touche
chartered accountants and statutory auditors 
deloitte  touche house
earlsfort terrace dublin 2 ireland
21 november 2013 financial statements
stellar diamonds plc       29
consolidated statement 
of comprehensive income 
for the year ended 
30 june 2013 
stated in us dollars
notes
year ended 
30 june 2013
 year ended 
30 june 2012
revenue   
3  370099
cost of sales   1274256
gross loss   904157
impairment of property plant and equipment     11  1367495
impairment of intangibles 8 2000000 
administrative expenses 2998492 3124975
4998492 4492470
loss before tax   4998492 5396627
income tax expense 6  
loss after tax attributable to equity holders of the parent
4 4998492 5396627
total comprehensive income for the year period attributable 
to equity holders of the parent 4998492 5396627
weighted average number of shares 307884858 224100028
basic and diluted loss per share 7 002 002 financial statements
30       annual report  accounts 2013
consolidated and company 
statement of financial 
position as at 30 june 2013
stated in us dollars
company
notes 30 june 2013 30 june 2012 30 june 2013 30 june 2012
assets
noncurrent assets
intangible assets 8 13663445 12586069 1302561 1302561
property plant and 
equipment 11 3278294 4599881  
investment in subsidiary 9   4157484 4157484
total noncurrent assets 
 16941739 17185950 5460045 5460045
current assets
trade and other receivables 12 37506 501861 11104479 12409377
cash and cash equivalents 
 60669 1537211 531 9570
total current assets 
 98175 2039072 11105010 12418947
total assets  17039914 19225022 16565055 17878992
equity and liabilities
capital and reserves
share capital 13 19051534 18220394 19051534 18220394
share premium 13 28457522 27018776 28457522 27018776
reverse acquisition reserve 2 17073279 17073279  
share option reserve 14 4423538 4177000 2089620 1843082
foreign currency translation reserve   773363 773363
accumulated loss  52680614 47744789 32500055 28564229
total equity  16325259 18744660 16325258 17744660
noncurrent liabilities
provision 15 104369 104369  
total noncurrent liabilities 
  104369 104369  
current liabilities
trade and other payables 16 610286 375993 239797 134332
total current liabilities  610286 375993 239797 134332
total liabilities  714655 480362 239797 134332
total equity and liabilities  17039914 19225022 16565055 17878992
the financial statements of stellar diamonds plc registered number 5424214 were approved by the board of directors and authorised 
for issue on 21st november 2013 they were signed on its behalf by
n karl smithson lord daresbury
consolidated financial statements
stellar diamonds plc       31
consolidated and company 
statement of changes in 
equity for the year ended 
30 june 2013 
stated in us dollars
consolidated 
share
 capital
note 13
share
 premium
note 13
warrant
 reserve
share 
option
reserve
note 14
reverse 
acquisition
reserve
note 2
accumulated 
loss total equity
balance at 30 june 2011 
17161566 25055393 155235 4177000 17073279 42503397 21119076
total comprehensive income for 
the year      5396627 5396627
issue of placing shares note 13 1058828 2117655     3176483
share issue costs 
note 13  154272     154272
warrants expired 
  155235   155235 
balance at 30 june 2012 18220394 27018776  4177000 17073279 47744789 18744660
total comprehensive income for 
the year      4998492 4998492
issue of placing shares note 13 831140 1466592     2297732
share issue costs 
note 13  27846     27846
share options issued note 14    309205   309205
share options expired 
note 14    62667  62667 
balance as at 30 june 2013 19051534 28457522  4423538 17073279 52680614 16325259
company 
share
 capital
note 13
share
 premium
note 13
warrant
 reserve
share 
option
reserve
note 14
reverse 
acquisition
reserve
note 2
accumulated 
loss total equity
balance at 30 june 2011 
17161566 25055393 155235 1843082 773363 22322837 21119076
total comprehensive income for 
the year      6396627 6396627
issue of placing shares note 13 1058828 2117655     3176483
share issue costs 
note 13  154272     154272
warrants expired 
  155235   155235 
balance at 30 june 2012 18220394 27018776  1843082 773363 28564229 17744660
total comprehensive income for 
the year      3998493 3998493
issue of placing shares note 13 831140 1466592     2297732
share issue costs 
note 13  27846     27846
share options issued note 14    309205   309205
share options expired 
note 14    62667  62667 
balance as at 30 june 2013 19051534 28457522  2089620 773363 32500055 16325258 financial statements
32       annual report  accounts 2013
consolidated and company 
statement of cash flows 
for the year ended 30 june 
2013
stated in us dollars
year ended 
30 june 2013
year ended 
30 june 2012
year ended 
30 june 2013
year ended 
30 june 2012
cash flows from operating activities
net loss for the yearperiod 4998492 5396627 3998493 6396627
adjustments for
  depreciation of property plant and 
equipment 720096 1099137  
  impairment of intangibles 2000000   
  impairment of property plant and equipment  1367495  
  sharebased payment expense 309205  309205 
  shares issued to directors and officers in lieu of 
fees 175570 186252 175570 186252
  net foreign exchange lossgain 31898 49751 4515 1241
change in working capital items
  decrease  increase in receivables 464354 307374 1304897 3423333
  decrease  increase in stock  507242  
  increase in trade and other payables 234293 60108 105465 181753
net cash used in operations 1063076 2434016 2107871 2970036
cash flows from investing activities
  purchases of property plant and equipment 55199 707047  
  payments to acquire intangible assets 2420686 4626576  
net cash used in investing activities 2475885 5333623  
cash flows from financing activities
  proceeds from issue of share capital net of costs 2094317 2835958 2094317 2835958
net cash generated by financing activities 2094317 2835958 2094317 2835958
net decreaseincrease in cash and cash equivalents 1444644 4931681 13554 134078
cash and cash equivalents beginning of year 1537211 6518640 9570 142406
effect of foreign exchange rate changes 31898 49748 4515 1242
cash and cash equivalents end of year 60669 1537211 531 9570
consolidated company financial statements
stellar diamonds plc       33
year ended 
30 june 2013
year ended 
30 june 2012
year ended 
30 june 2013
year ended 
30 june 2012
cash flows from operating activities
net loss for the yearperiod 4998492 5396627 3998493 6396627
adjustments for
  depreciation of property plant and 
equipment 720096 1099137  
  impairment of intangibles 2000000   
  impairment of property plant and equipment  1367495  
  sharebased payment expense 309205  309205 
  shares issued to directors and officers in lieu of 
fees 175570 186252 175570 186252
  net foreign exchange lossgain 31898 49751 4515 1241
change in working capital items
  decrease  increase in receivables 464354 307374 1304897 3423333
  decrease  increase in stock  507242  
  increase in trade and other payables 234293 60108 105465 181753
net cash used in operations 1063076 2434016 2107871 2970036
cash flows from investing activities
  purchases of property plant and equipment 55199 707047  
  payments to acquire intangible assets 2420686 4626576  
net cash used in investing activities 2475885 5333623  
cash flows from financing activities
  proceeds from issue of share capital net of costs 2094317 2835958 2094317 2835958
net cash generated by financing activities 2094317 2835958 2094317 2835958
net decreaseincrease in cash and cash equivalents 1444644 4931681 13554 134078
cash and cash equivalents beginning of year 1537211 6518640 9570 142406
effect of foreign exchange rate changes 31898 49748 4515 1242
cash and cash equivalents end of year 60669 1537211 531 9570
notes to the financial 
statements 
for the year ended 
30 june 2013
stated in us dollars 
1 basis of preparation
stellar diamonds plc
on 22 february 2010 the company completed its acquisition of stellar diamonds limited in a share for share exchange
under the terms of the acquisition agreement the company agreed to acquire the entire issued share capital of stellar 
diamonds limited for a consideration equating to approximately three times the value of west african diamonds plc 
“wad” represented by an approximate 7525 split of the share capital in the enlarged group prior to the issue of placing 
shares  75 per cent being attributable to consideration shares to be allotted to stellar diamonds limited shareholders and 
25 per cent being attributable to ordinary shares held by wad plc shareholders subsequent to the acquisition wad plc 
changed its name to stellar diamonds plc 
11   basis of accounting
stellar diamonds plc is presenting audited financial statements as of and for the year ended 30 june 2013  the comparative 
period presented is audited financial statements as of and for the year ended 30 june 2012
the financial statements have been prepared in accordance with international financial reporting standards “ifrss” 
as published by the iasb the financial statements have also been prepared in accordance with ifrss as adopted by the 
european union and in accordance with the companies act 2006 the consolidated financial statements have been 
prepared on an historical cost basis as adjusted for certain financial instruments carried at fair value
12   going concern
the group made a loss for the year of 4998492 and had net current liabilities of 512111 at the balance sheet date
during the year the group raised just over 22m through two placings following the year end in july 2013 the group 
raised a further 24m to further advance its evaluation programme at the tongo project in sierra leone
given the positive exploration and evaluation results produced at tongo to date and the stage of development of the 
project the directors believe that the company will continue to have the ability to access sufficient levels of finance to 
meet essential administrative expenses and to continue the group’s projects for the foreseeable future  on that basis the 
directors continue to adopt the going concern basis in preparing these financial statements
the going concern of the group is dependent on obtaining additional finance in order to meet its working capital needs 
for a period of not less than twelve months from the date of approval of the financial statements and to continue to fund 
development of exploration projects this indicates the existence of a material uncertainty which may cast significant 
doubt on the ability of the company and the group to continue as a going concern
the directors are confident that they can fulfil the funding requirements of the company through attracting funding 
through joint ventures sale of assets recommencement of mining reducing overheads or the issue of further shares by 
way of private placement  on this basis the directors are satisfied that it is appropriate to prepare the financial statements 
of the group on a going concern basis the financial statements do not include any adjustment to the carrying amount or 
classification of assets and liabilities that would occur if the company was unable to continue as a going concern financial statements
34       annual report  accounts 2013
notes to the financial statements 
for the year ended 30 june 2013 
continued
stated in us dollars 
13   standards adopted during the year
the company has adopted the following standards which are effective for the first time this year  
• amendments to ias 1 – presentation of items of other comprehensive income 1 july 2012
• amendments to ias 12 dec 2010 – deferred tax recovery of underlying assets 1 january 2012
the adoption of these standards and interpretations did not have a material impact to the consolidated financial statements
14   standards in issue but not yet effective
the following standards and interpretations which have been recently issued or revised have not been adopted early  
• amendments to ias 39 – novation of derivatives and continuation of hedge accounting 1 january 2014
• amendments to ias 36 – recoverable amount disclosures for nonfinancial assets 1 january 2014
• amendments to ifrs 10 ifrs 12 and ias 27  investment entities 1 january 2014
• annual improvements to ifrss 20092011 cycle 1 january 2013
• amendments to ifrs 1 – government loans 1 january 2013
• amendments to ias 32 – offsetting financial assets and financial liabilities 1 january 2014
• amendments to ifrs 7 – disclosures – offsetting financial assets and financial liabilities 1 january 2013
• ifrs 9 – financial instruments 1 january 2015
• ias 19 revised june 2011 – employee benefits 1 january 2013
• ifrs 13 – fair value measurement 1 january 2013
• ifrs 12 – disclosure of interests in other entities 1 january 2014
• ifrs 11 – joint arrangements 1 january 2014
• ifrs 10 – consolidated financial statements 1 january 2014
• ias 28 revised may 2011 – investments in associates and joint ventures 1 january 2014
• ias 27 revised may 2011 – separate financial statements 1 january 2014
• ifric 21 – levies 1 january 2014
• ifric 20 – stripping costs in the production phase of a surface mine 1 january 2013
2 significant accounting policies
the accounting policies set out below have been applied consistently in these financial statements unless otherwise 
stated
21   basis of consolidation 
211   business combinations 
the acquisition of subsidiaries is accounted for using the acquisition method  the cost of acquisition is measured at the 
aggregate of the fair values at the date of exchange of assets given liabilities incurred or assumed and equity instruments 
issued by the group in exchange for control of the acquiree  the acquiree’s identifiable assets liabilities and contingent 
liabilities that meet the conditions for recognition under ifrs 3 are recognised at their fair value at the acquisition date financial statements
stellar diamonds plc       35
212   reverse acquisition 
stellar diamonds limited completed its reverse acquisition of west african diamonds plc wad in february 2010 a 
reverse acquisition occurs when the company that issues equity securities the legal acquirer is identified as the acquiree 
for accounting purposes  the entity whose equity interests are acquired the legal acquiree is treated as the acquirer for 
accounting purposes
in a reverse acquisition the accounting acquirer usually issues no consideration for the acquiree instead the accounting 
acquiree usually issues its equity shares to the owners of the accounting acquirer accordingly the acquisitiondate fair 
value of the consideration transferred by the accounting acquirer for its interest in the accounting acquiree is based on 
the number of equity interests the legal subsidiary would have had to issue to give the owners of the legal parent the same 
percentage equity interest in the combined entity that results from the reverse acquisition 
consolidated financial statements prepared following a reverse acquisition are issued under the name of the legal parent 
accounting acquiree but described in the notes as a continuation of the financial statements of the legal subsidiary 
accounting acquirer with one adjustment which is to adjust retroactively the accounting acquirer’s legal capital to 
reflect the legal capital of the accounting acquiree that adjustment is required to reflect the capital of the legal parent 
the accounting acquiree comparative information presented in the consolidated financial statements also is retroactively 
adjusted to reflect the legal capital of the legal parent accounting acquiree 
because the consolidated financial statements represent the continuation of the financial statements of the legal subsidiary 
except for its capital structure the consolidated financial statements on the date of acquisition reflect
a the assets and liabilities of the legal subsidiary the accounting acquirer recognised and measured at their pre
combination carrying amounts
b the assets and liabilities of the legal parent the accounting acquiree recognised and measured in accordance with 
ifrs 3
c the retained earnings and other equity balances of the legal subsidiaryaccounting acquirer before the business 
combination and
d the amount recognised as issued equity interests in the consolidated financial statements determined by adding 
the issued equity interest of the legal subsidiary the accounting acquirer outstanding immediately before the business 
combination to the fair value of the legal parent accounting acquiree determined in accordance with this ifrs however 
the equity structure ie the number and type of equity interests issued reflects the equity structure of the legal parent 
the accounting acquiree including the equity interests the legal parent issued to effect the combination  accordingly 
the equity structure of the legal subsidiary the accounting acquirer is restated using the exchange ratio established in the 
acquisition agreement to reflect the number of shares of the legal parent the accounting acquiree issued in the reverse 
acquisition
213   subsidiaries 
subsidiaries are entities controlled by the company control exists when the company has the power directly or indirectly 
to govern the financial and operating policies of an entity so as to obtain benefits from its activities in assessing control 
potential voting rights that presently are exercisable or convertible are taken into account the financial statements of 
subsidiaries are included in the consolidated financial statements from the date that control commences until the date that 
control ceases investments in subsidiaries are stated at cost less any provision for impairment
214   transactions eliminated on consolidation 
intragroup balances and any unrealized gains and losses or income and expenses arising from intragroup transactions 
are eliminated in preparing the consolidated financial statements  financial statements
36       annual report  accounts 2013
22   foreign currency translation
221   functional and presentation currency
items included in the financial statements of each of the group’s entities are measured using the currency of the primary 
economic environment in which the entity operates “the functional currency” the consolidated financial statements are 
presented in us dollars “” which is the functional and presentation currency for all the group’s operations 
222   foreign currency transactions 
foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates 
of the transactions foreign exchange gains and losses resulting from the settlement of such transactions and from 
the translation at periodend exchange rates of monetary assets and liabilities denominated in foreign currencies are 
recognised in the consolidated statement of comprehensive income
23   property plant and equipment
all property plant and equipment are stated at historical cost less accumulated depreciation and accumulated impairment 
losses historical cost includes expenditures that are directly attributable to the acquisition of the items subsequent costs 
are included in the asset’s carrying amount or recognized as a separate asset as appropriate only when it is probable 
that future economic benefits associated with the item will flow to the group and the cost of the item can be measured 
reliably the carrying amounts of any replaced parts are derecognized all other repairs and maintenance are charged to 
the consolidated statement of comprehensive income during the financial period in which they are incurred 
mining assets which include evaluation and development costs capitalised prior to commencement of production are 
depreciated using a unit of production method based on the quantity of carats produced over the estimated economically 
recoverable reserves  
machinery and equipment which is comprised of office furniture automobiles and other equipment are depreciated at 
30 per annum on a reducing balance basis
assets in the course of construction are carried at cost less any recognised impairment loss  depreciation of these assets 
commences when the assets are ready for their intended use
the assets’ residual values and useful lives are reviewed and adjusted if appropriate at each balance sheet date an asset’s 
carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its 
estimated recoverable amount
24   intangible assets  exploration and evaluation expenditure
the group follows the method of accounting for its mineral properties whereby all costs related to acquisition exploration 
and evaluation are capitalized pending determination of the feasibility of the project these assets are not depreciated 
exploration and evaluation assets are assessed for impairment when facts and circumstances suggest that the carrying 
amount of an exploration and evaluation asset may exceed its recoverable amount when facts and circumstances suggest 
that the carrying amount exceeds the recoverable amount the group measures presents and discloses any resulting 
impairment loss in the consolidated statement of comprehensive income
the facts and circumstances indicating impairment include the following
• the period for which the group has a right to explore in the specific area has expired or is expected to expire
• exploration for and evaluation of resources in the specific area have not led to the discovery of commercially viable 
notes to the financial statements 
for the year ended 30 june 2013 
continued
stated in us dollars  financial statements
stellar diamonds plc       37
quantities of resources and the group has decided to discontinue such activities in the specific area
• sufficient data exists to indicate that although a development in the specific area is likely to proceed the carrying 
amount of the exploration and evaluation asset is unlikely to be recovered in full from successful development or by 
sale or 
• substantive expenditure or further exploration and evaluation in the specific area is neither budgeted nor planned  
exploration costs are capitalised as an intangible asset until technical feasibility and commercial viability of extraction 
of reserves are demonstrable when the capitalised exploration costs are reclassed to property plant and equipment 
exploration costs include an allocation of administration and salary costs including share based payments as determined 
by management 
prior to reclassification to property plant and equipment exploration and evaluation assets are assessed for impairment 
and any impairment loss recognised immediately in the statement of comprehensive income
25   impairment 
at each balance sheet date the group reviews the carrying amounts of its noncurrent assets to determine whether there 
is any indication that those assets have suffered an impairment loss if any such indication exists the recoverable amount 
of the asset is estimated in order to determine the extent of the impairment loss if any where the asset does not generate 
cash flows that are independent from other assets the group estimates the recoverable amount of the cashgenerating 
unit to which the asset belongs 
recoverable amount is the higher of fair value less costs to sell and value in use in assessing value in use the estimated 
future cash flows are discounted to their present value using a pretax discount rate that reflects current market assessments 
of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been 
adjusted
if the recoverable amount of an asset or cashgenerating unit is estimated to be less than its carrying amount the 
carrying amount of the asset cashgenerating unit is reduced to its recoverable amount an impairment loss is recognised 
as an expense immediately
where an impairment loss subsequently reverses the carrying amount of the asset cashgenerating unit is increased to 
the revised estimate of its recoverable amount but so that the increased carrying amount does not exceed the carrying 
amount that would have been determined had no impairment loss been recognised for the asset cashgenerating unit in 
prior periods a reversal of an impairment loss is recognised as income immediately
26   provisions
provisions are recognised when the group has a present obligation as a result of a past event it is probable that the group 
will be required to settle the obligation and a reliable estimate can be made of the amount of obligation  where the effect 
of discounting is material provisions are discounted  the discount rate used is a pretax rate that reflects current market 
assessment of the time value of money and where appropriate the risks specific to the liability 
27   decommissioning mine closure and environmental rehabilitation
the estimated cost of decommissioning mine closure and environmental rehabilitation is based on current legal 
requirements and existing technology  a provision is raised based on the present value of the estimated costs  these costs 
are included in the cost of the related asset  the capitalised assets are depreciated in accordance with the accounting 
policy for property plant and equipment   financial statements
38       annual report  accounts 2013
28   financial instruments
loans and receivables
trade receivables loans and other receivables that have fixed and determinable payments that are not quoted in an active 
market are classified as loans and receivables  loans and receivables are initially measured at fair value plus transaction 
costs and subsequently measured at amortised cost using the effective interest method  interest income is recognised by 
applying the effective interest rate except for shortterm receivables when the recognition of interest would be immaterial
impairment of financial assets at amortised cost
financial assets that are measured at amortised cost are assessed for indicators of impairment at the end of each reporting 
period financial assets are considered to be impaired when there is objective evidence that as a result of one or more 
events that occurred after the initial recognition of the financial asset the estimated future cash flows of the financial asset 
have been affected
derecognition of financial assets
the group derecognises a financial asset only when the contractual rights to the cash flows from the asset expire or 
it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity if 
the group neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the 
transferred asset the group recognises its retained interest in the asset and an associated liability for amounts it may have 
to pay if the group retains substantially all the risks and rewards of ownership of a transferred financial asset the group 
continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received
cash and cash equivalents
cash and cash equivalents comprise cash on hand and demand deposits and other shortterm highly liquid investments 
that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value
financial liabilities and equity
financial liabilities and equity instruments are classified according to the substance of the contractual arrangements 
entered into 
equity instruments
an equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its 
liabilities equity instruments issued by the group are recorded at the proceeds received net of direct issue costs
financial liabilities 
financial liabilities are classified as either financial liabilities ‘at fvtpl’ or ‘other financial liabilities’
other financial liabilities 
other financial liabilities including borrowings are initially measured at fair value net of transaction costs other financial 
liabilities are subsequently measured at amortised cost using the effective interest method the effective interest method is 
a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period 
the effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of 
the financial liability or where appropriate a shorter period
notes to the financial statements 
for the year ended 30 june 2013 
continued
stated in us dollars  financial statements
stellar diamonds plc       39
derecognition of financial liabilities
the group derecognises financial liabilities when and only when the group’s obligations are discharged cancelled or 
they expire
29   income tax 
the current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance 
sheet date in the countries where the company’s subsidiaries operate and generate taxable income management 
periodically evaluate positions taken in tax returns with respect to situations in which applicable tax regulation is subject 
to interpretation and establishes provisions where appropriate on the basis of amounts expected to be paid to the tax 
authorities
deferred tax is provided in full using the liability method on temporary differences arising between the tax bases of 
assets and liabilities and their carrying amounts in the consolidated financial statements however the deferred tax is not 
accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination 
that at the time of the transaction affects neither accounting nor taxable profit or loss deferred tax is determined using 
tax rates and laws that have been enacted or substantively enacted by the balance sheet date and are expected to apply 
when the related deferred tax asset is realised or the deferred tax liability is settled
deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which 
the temporary differences can be utilised
deferred tax is provided on temporary differences arising on investments in subsidiaries and associates except where 
the timing of the reversal of the temporary difference is controlled by the company and it is probable that the temporary 
difference will not reverse in the foreseeable future
210   sharebased payments
equitysettled sharebased payments to employees and others providing similar services are measured at the fair value of 
the equity instruments at the grant date fair value is measured by use of a blackscholes model the expected life used 
in the model has been adjusted based on management’s best estimate for the effects of nontransferability exercise 
restrictions and behavioural considerations 
equitysettled share options granted to employees vest immediately and therefore the charge is recognised in the 
consolidated statement of comprehensive income at the grant date  
equitysettled sharebased payment transactions with other parties are measured at the fair value of the goods and services 
received except where the fair value cannot be estimated reliably in which case they are measured at the fair value of the 
equity instruments granted measured at the date the entity obtains the goods or the counterparty renders the service
211   revenue recognition
revenue relating to sale of diamonds is measured at the fair value of the consideration received or receivable  revenue is 
recognised when the following conditions are satisfied
• the group has transferred to the buyer the significant risks and rewards of ownership of the goods
• the group retains neither the continuing managerial involvement to the degree usually associated with ownership 
nor effective control over the goods sold
• the amount of revenue can be measured reliably
• it is probable that the economic benefits associated with the transaction will flow to the group and financial statements
40       annual report  accounts 2013
• the costs incurred or to be incurred in respect of the transaction can be measured reliably
 
212   critical accounting judgements and sources of estimation uncertainty
in the application of the group’s accounting policies the directors are required to make judgements estimates and 
assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources the 
estimates and associated assumptions are based on historical experience and other factors that are considered to be 
relevant actual results may differ from these estimates
the estimates and underlying assumptions are reviewed on an ongoing basis revisions to accounting estimates are 
recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the 
revision and future periods if the revision affects both current and future periods
key sources of estimation uncertainty and judgements made in applying specific accounting policies are as follows
share based payments
in determining the fair value of sharebased payments made during the period to employees and those parties providing 
services of a similar nature a number of assumptions have been made by management the details of these assumptions 
are reflected in note 14
carrying value of noncurrent assets
the outcome of ongoing exploration and therefore whether the carrying value of the machinery and equipment and 
exploration and evaluation expenditures will ultimately be recovered is inherently uncertain  
the ability of the company to realise the carrying values of these assets is contingent upon production or discovery of 
economically recoverable mineral reserves the ongoing title to the resource properties the ability of the company to 
finance the development of the properties and on the future profitable production or proceeds from the property  the 
success of the company’s mineral exploration properties is also influenced by significant risks including legal and political 
risks and future diamond prices
the directors make the judgements necessary to implement the group’s policy with respect to capitalisation of these 
assets and consider them for impairment at least annually with reference to indicators in ias 36 and ifrs 6  if an indication 
exists an assessment is made of the recoverable amount  the recoverable amount is the higher of value in use being 
the net present value of expected future cash flows and fair value less costs to sell  value in use is estimated based 
on operational forecasts for advanced stage projects with key inputs that include diamond resources diamond prices 
production levels including grade and tonnes processed production costs and capital expenditure  however because of 
the abovementioned uncertainties actual future cash flows could materially differ from those estimated  the carrying 
value of property plant and equipment and exploration and evaluation costs are set out in notes 8 and 11
provisions
estimates and assumptions are made in determining the amount attributable to rehabilitation provision  these deal with 
uncertainties such as legal and regulatory framework timing and future costs  the carrying value of the rehabilitation 
provision is disclosed in note 15
depreciation of mining assets
in order to calculate depreciation on mining assets the group estimates commercially recoverable reserves based on 
an independent report prepared by a competent person in accordance with june 2009 note for mining oil and gas 
notes to the financial statements 
for the year ended 30 june 2013 
continued
stated in us dollars  financial statements
stellar diamonds plc       41
companies issued by the london stock exchange plc alternative investment market
during the previous year all mining assets were fully impaired and have a zero net book value at 30 june 2013
3 segments
the company is engaged in the acquisition exploration development and production of diamond properties in the west 
african countries of sierra leone and guinea  information presented to the chief executive officer for the purposes 
of resource allocation and assessment of segment performance is focused on the individual projects in geographical 
locations  the reportable segments under ifrs 8 are therefore as follows
• mandala guinea
• bomboko guinea
• kono sierra leone
• tongo sierra leone
• droujba guinea
• other exploration
• corporate activities in the united kingdom 
following is an analysis of the group’s revenue results assets and liabilities by reportable segment for the year ended 30 
june 2013  financial statements
42       annual report  accounts 2013
mandala bomboko kono tongo droujba
other 
exploration corporate total
       
revenue – sale of 
diamonds        
segment result 1092305    2000000  1906187 4998492
finance costs 
loss before tax 4998492
income tax expense 
loss after tax 4998492
segment assets 1694819 902810 4700766 4980468 4048427 203887 508737 17039914
segment liabilities 84390 30000 2000 82112 82914  433239 714655
share based payment 
expense       309205 309205
carrying value of 
intangible assets   4690215 4756162 3611340 191119 414609 13663445
net book value of 
property plant and 
equipment 1682143  8217 220107 1355666 10847 1314 3278294
capital additions
  property plant and 
equipment 2222   2140 49573  1264 55199
  intangible assets   317639 1403175 1356562   3077376
depreciation of 
property plant and 
equipment 719966  3522 93414 559754  130 1376786
impairment of 
intangibles     2000000   2000000
notes to the financial statements 
for the year ended 30 june 2013 
continued
stated in us dollars  financial statements
stellar diamonds plc       43
following is an analysis of the group’s revenue and results by reportable segment for the year ended 30 june 2012 
mandala bomboko kono tongo droujba
other 
exploration corporate total
       
revenue – sale of 
diamonds 370099       370099
segment result 3688332 36264 928 21621 725  1648757 5396627
loss before tax 5396627
income tax expense 
loss after tax 5396627
segment assets 2441783 1288062 4393317 3679967 4819507 203887 2398499 19225022
segment liabilities 91289 30000 4000 307 3959  350807 480362
share based payment 
expense        
carrying value of 
intangible assets   4372575 3352987 4254779 191119 414609 12586069
net book value of 
property plant and 
equipment 2399897  11739 311381 1865845 10847 172 4599881
capital additions
  property plant and 
equipment 27809  1795 71714 605729   707047
  intangible assets   453526 1968949 2995589   5418064
depreciation of property 
plant and equipment 1098951  5031 133449 653008  186 1890625
impairment of property 
plant and equipment 1367495       1367495
4 loss for the year
loss for the year has been arrived at after charging
year ended 30 june 2013 year ended 30 june 2012
    
fees payable to the company’s auditors for the audit of the 
group’s accounts 
  audit services 38457 35250
  nonaudit services  
net foreign exchange loss 31898 49751
depreciation of property plant and equipment 720096 1099137
impairment of property plant and equipment  1367495
impairment of intangibles 2000000 
sharebased payments 309205 
656690 of depreciation charges were capitalised as exploration and evaluation expenditure during the year and 
consequently are not included in the statement of comprehensive income 2012 791488 financial statements
44       annual report  accounts 2013
5 staff costs
year ended 30 june 2013 year ended 30 june 2012
    
wages and salaries 1459952 1882246
social security costs 95793 142777
sharebased payments 309205 
1864950 2025023
the average monthly number of employees including executive directors was 161 30 june 2012 191  the remuneration 
of key management personnel is further disclosed in note 17
632504 of staff costs were capitalised as exploration and evaluation expenditure during the year and consequently are 
not included in the statement of comprehensive income 2012 963531
6 income tax expense
year ended 30 june 2012 year ended 30 june 2011
    
current taxation  
deferred taxation  
 
the analysis of the group’s taxation charge for the year based on the company’s statutory tax rate of 23 is as follows
year ended 30 june 2013 year ended 30 june 2012
    
loss for the year 4998492 5396627
tax at the uk corporation tax rate of 23 2012 24 1149653 1295190
effect of different tax rates of subsidiaries operating in other 
jurisdictions 87349 320424
impairment not deductible for taxation purposes 700000 328199
tax losses not utilised and carried forward 285014 858300
depreciation in excess of capital allowances 251988 429115
 
a deferred taxation asset is not recognised in respect of carried forward losses due to uncertainty over the utilisation of the 
losses  the unrecognised deferred taxation asset is 4148298 30 june 2012 3863284 based on carried forward tax 
losses of 12083105 30 june 2012 of 11037954 which expire 10 years from the date these were incurred
notes to the financial statements 
for the year ended 30 june 2013 
continued
stated in us dollars  financial statements
stellar diamonds plc       45
7 loss per share
year ended 30 june 2013 year ended 30 june 2012
    
loss after tax attributable to equity holders of the parent 4998492 5396627
weighted average number of ordinary shares for the purposes of 
basic and diluted loss per share 307884858 224100028
basic and diluted loss per share 002 002
basic and diluted loss per share are the same as the effect of the outstanding share options are antidilutive and are 
therefore excluded outstanding share options are detailed in note 14
8 intangible assets
year ended 30 june 
2013
year ended 30 june 
2012
year ended 30 june 
2013
year ended 30 june 
2012
        
exploration and evaluation expenditure
cost
opening balance 27509319 22091255 4408327 4408327
additions  3077376 5418064  
closing balance 30586695 27509319 4408327 4408327
impairment
opening balance  14923250 14923250 3105766 3105766
charge for the year 2000000   
closing balance  16923250 14923250 3105766 3105766
carrying value  13663445 12586069 1302561 1302561
at 30 june 2013 the group did not have any contractual commitments for the acquisition of intangible assets  
the realisation of the net carrying value of intangible assets of 13663445 is dependent on the discovery and successful 
development of economic mineral reserves including the group’s ability to raise sufficient finance to develop the projects 
and other factors as discussed in note 212
following the completion of the conceptual economic scoping study on the droujba project in the year the directors 
undertook an impairment review of the exploration and evaluation expenditure on the droujba project and determined 
that an impairment charge of 2000000 be made to the statement of comprehensive income  the impairment review 
took the form of a net present value calculation taking into account a number of key assumptions
• economically recoverable reserves are based on management’s expectations and technical studies undertaken  
 internally and by a competent person where available 
• diamond prices are based on independent valuations and models and subsequent rough price changes and an  
 annual increase of 45 thereafter 
• discount rate of 10  
consolidated company financial statements
46       annual report  accounts 2013
• inflation rate of 45 and 
 
• the projected life of the potential mine of 3 years 
the net present value calculation is most sensitive to the modeled diamond price used  a 10 increase or decrease in 
the modeled diamond price would result in an increase or decrease in the value of the asset of approximately 15m
in the previous year a dispute emerged in relation to the two exploration licenses held for the kono site the group 
received a letter from the ministry of mines of sierra leone “the ministry” which asserts that the ministry ought 
not to have granted the renewals of the company’s licences in 2010 under the mines and minerals act of 2009 and 
that as a result the company no longer has mineral rights over the licences  the company disputes the assertions 
and has continued to pursue the available political diplomatic and legal routes available should these routes prove 
unsuccessful the carrying value included in the statement of financial position would be written off to the statement of 
comprehensive income
9 investment in subsidiaries
year ended 30 june 2013 year ended 30 june 2012
    
at cost unlisted
opening and closing balance 4157484 4157484
the whollyowned subsidiaries of the company at 30 june 2013 are
company country of incorporation nature of business
stellar diamonds limited guernsey holding company
west african diamonds sarl guinea diamond producer
castlebay resources limited scotland prospecting and exploration of 
diamonds
basama diamonds ltd and its branch republic of seychelles prospecting and exploration of 
diamonds
basama diamond ltd sierra leone branch sierra leone prospecting and exploration of 
diamonds
sierra diamonds limited and its branch british virgin islands prospecting and exploration of 
diamonds
sierra leone diamonds limited sierra leone branch sierra leone prospecting and exploration of 
diamonds
guinean diamond corporation ltd and its subsidiaries republic of seychelles holding company
mano river diamants guinee sa guinea prospecting and exploration of 
diamonds
ressources mandala guinée sarl guinea diamond producer
friendship diamonds guinee sa guinea prospecting and exploration of 
diamonds
the realisation of investments in subsidiaries of 4157484 is dependent on the discovery and successful development of 
economic mineral reserves and other factors as discussed in note 2
notes to the financial statements 
for the year ended 30 june 2013 
continued
stated in us dollars  financial statements
stellar diamonds plc       47
10 parent company income statement
as permitted by section 408 of the companies act 2006 the parent company’s income statement has not been presented in 
these financial statements the loss after taxation for the parent company for the year ended 30 june 2013 was 3998493 
year ended 30 june 2012 loss 6396627
11  property plant and equipment
mining assets machinery and equipment total
  
cost
at 1 july 2011 14816878 5248652 20065530
additions  707047 707047
transfer to machinery and equipment 3737573 3737573 
at 30 june 2012 11079305 9693272 20772577
additions  55199 55199
at 30 june 2013 11079305 9748471 20827776
depreciation
at 1 july 2011 10681411 2233165 12914576
charge for the year  1890625 1890625
impairment 1367495  1367495
transfer to machinery and equipment 969601 969601 
at 30 june 2012 11079305 5093391 16172696
charge for the year  1376786 1376786
impairment   
at 30 june 2013 11079305 6470177 17549482
carrying value
at 30 june 2013  3278294 3278294
at 30 june 2012  4599881 4599881
in accordance with the accounting policy stated in note 25 the group tests property plant and equipment for impairment 
when an indication of impairment exists the recoverable amount of cash generating units is determined based on value
inuse calculations which require the use of estimates cash flows were estimated over a period of 10 years the estimated 
cash flows from the exploration projects produced net present values well in excess of their carrying values and are based 
on the following assumptions 
• economically recoverable reserves and resources are based on management’s expectations based on availability of 
reserves at mine sites and technical studies undertaken internally and by a competent person where available
• diamond prices are based on independent valuations and models and an annual increase of 45 thereafter
• discount rate of 10 
• inflation rate of 45and 
• the remaining useful life financial statements
48       annual report  accounts 2013
notes to the financial statements 
for the year ended 30 june 2013 
continued
stated in us dollars 
mining assets being previously capitalised exploration costs at bomboko and mandala were fully impaired during the 
previous year resulting in an impairment charge in 2012 of 1367495 being charged to the statement of comprehensive 
income
the group did not have any further contractually committed costs for the acquisition of property plant and equipment at 
30 june 2013  
the realisation of tangible assets of 3278294 is dependent on the discovery and successful development of economic 
mineral reserves including the group’s ability to raise sufficient finance to develop the projects and other factors as 
discussed in note 212
12 trade and other receivables
30 june 2013 30 june 2012 30 june 2013 30 june 2012
 
amounts due within one year
vat 20748 21523 20748 21523
prepayments and other receivables 16758 480338  
amounts due after one year
amounts due from subsidiaries   11083731 12387854
37506 501861 11104479 12409377
the directors consider the carrying amount of trade and other receivables to be approximately equal to their fair value 
year ended 30 june 2013 year ended 30 june 2012
    
amounts due from subsidiaries comprises of
stellar diamonds limited 9931569 11235692
west african diamonds sarl 807205 807205
friendship diamonds guinee sa 277068 277068
sierra diamonds limited 55830 55830
basama diamonds ltd 12059 12059
11083731 12387854
the realisation of amounts due from subsidiaries is dependent on the discovery and successful development of economic 
mineral reserves and other factors as discussed in note 212
13 share capital and share premium
share capital
authorised 
unlimited number of ordinary shares of 1p and deferred shares of 4p each
company consolidated financial statements
stellar diamonds plc       49
number 
ordinar y shares  
number
deferred shares
share 
capital share premium
 
allotted calledup and fully paid
balance as at 1 july 2011 216766659  17161566 25055393
subdivision of shares 216766659 216766659  
shares issued on share placing 66916991  1058828 2117655
share issue costs    154272
balance as at 30 june 2012 283683650 216766659 18220394 27018776
shares issued on share placing 52789390  831140 1466592
share issue costs    27846
balance as at 30 june 2013 336473040 216766659 19051534 28457522
in february 2013 a total of 41960640 ordinary shares of 1p each were allotted and issued 4224761 of these shares were 
issued in lieu of directors’ fees owed the remaining 37735879 shares were issued for gross proceeds of 1568202 
transaction costs of 25848 were netted against share premium
in october 2012 a total of 10828750 ordinary shares of 1p each were allotted and issued for gross proceeds of 553962  
transaction costs of 1998 were netted against share premium
in may 2012 each ordinary share of 5p in the company was replaced with one ordinary share of 1p and one deferred share 
of 4p in a share capital restructuring  
in may 2012 a total of 66916991 ordinary shares of 1p each were allotted and issued for gross proceeds of 3176483  
transaction costs of 154272 were netted against share premium
the deferred shares will not entitle their holders a to receive notice of or attend and vote at any general meeting of the 
company b to receive any dividend or other distribution or c to participate in any return on capital on a winding up 
other than the nominal amount paid on such shares following a substantial distribution to holders of ordinary shares in 
the company
14 share options
the share option reserve represents the value of the share options issued to the group’s directors and employees under 
the group’s share option scheme 
in december 2012 the company issued a total of 9300000 share options at an exercise price of 3p  the options issued 
have resulted in a charge of 309205 based on the blackscholes option pricing model and the following assumptions 
nil dividend yield a weighted average expected volatility of the company’s share price based on the past 12 months share 
price volatility of 103 a weighted average annual risk free rate of 0933 and an expected life of five years 
the following is a summary of the share options outstanding and exercisable as at 30 june 2013 and 30 june 2012 and 
changes during the year financial statements
50       annual report  accounts 2013
number of options
30 june 2013
weighted average 
exercise price number of options
30 june 2012
weighted average 
exercise price
gbp£ gbp£
outstanding and exercisable beginning of 
yearperiod 16094675 0169 16094675 0169
options granted 9300000 0030  
options expired 1428525 0871  
outstanding and exercisable end of year 23966150 0102 16094675 0169
options with a fair value at date of grant of 62667 expired during the year and as a result were transferred to retained 
earnings 
as at 30 june 2013 the following stock options were outstanding and exercisable
number of stock options outstanding exercise price per share expiry date
gbp£
400000 1000 15sep13
100000 1000 02dec13
20000 1000 08feb14
20000 1175 10apr14
500000 0150 23jul16
3246150 0200 22apr15
2350000 0110 10aug15
8030000 0080 31may16
9300000 0030 21dec17
23966150  
15 provision
30 june 2013 30 june 2012
 
balance at beginning and end of the year 104369 104369
the provision relates to the rehabilitation of the mandala and bomboko mines and is expected to be incurred in 2014
16 trade and other payables
year ended 30 june 
2013
year ended 30 june 
2012
year ended 30 june 
2013
year ended 30 june 
2012
   
amounts due within one year
trade payables and accruals 610286 375993 239797 134332
610286 375993 239797 134332
notes to the financial statements 
for the year ended 30 june 2013 
continued
stated in us dollars 
company consolidated financial statements
stellar diamonds plc       51
the carrying amount of trade and other payables is approximately equal to their fair value
17  related parties
the ultimate parent company and controlling party of stellar diamonds limited prior to the reverse acquisition was african 
aura mining inc aam  subsequent to the reverse acquisition african aura mining inc aam remained a shareholder 
of stellar diamonds plc  in april 2011 aam demerged assets including its investment in stellar diamonds plc to aureus 
mining inc aam was renamed afferro mining inc during the year the company and its subsidiaries in the ordinary 
course of business entered into various transactions with afferro mining inc these transactions occurred under terms and 
conditions that are no less favourable than those arranged with third parties 
the following table summarises the related party transactions
year ended 30 june 2013 year ended 30 june 2012
 
afferro mining inc shareholder 
  management fees charged 103416 108546
at 30 june 2013 65261 was owed to afferro mining inc 30 june 2012 81354
year ended 30 june 2013 year ended 30 june 2012
 
directors
  shares issued in lieu of accrued directors’ fees 175569 186252
  amounts owed to directors at 30 june 51380 
the directors are considered the company’s key management personnel  the remuneration earned in respect of the 
financial year by each director is as follows
salary or 
fees
bonus
paid in cash
bonus
paid in shares
share based 
payments
year ended 
30 june
2013
year ended 
30 june 
2012
     
lord daresbury 92585   33248 125833 92153
n karl smithson 234994 28384 42575 66496 372449 305541
luis da silva 25108   19949 45057 24991
steven poulton 39231   26598 65829 39048
james campbell 25108   19949 45057 24990
dr markus elsasser 12480   33248 45728 
429506 28384 42575 199488 699953 486723
the directors who held office at 30 june 2013 had the following interests in the ordinary shares of the company as of 30 
june 2013 financial statements
52       annual report  accounts 2013
notes to the financial statements 
for the year ended 30 june 2013 
continued
stated in us dollars 
                                           30 june 2013                                            30 june 2012
ordinary shares share options ordinary shares share options
lord daresbury 5913824 2702000 4938164 1702000
n karl smithson 3711284 6006500 2692424 4006500
luis da silva 833095 1953000 587355 1353000
steven j poulton 2543616 2252000 1919576 1452000
james campbell 1211796 1570000 457096 970000
dr markus elsasser 44138053 1000000 41278333 
58351668 15483500 51872948 9483500
 includes indirect beneficial holdings
 or date of appointment if later
the number of directors to whom retirement benefits are accruing is nil 2012 nil 
all remuneration in the current year related to short term employee benefits
18 financial instruments
the fair value of a financial instrument is defined as the amount at which the instrument could be exchanged in a current 
transaction between willing parties other than in a forced or liquidation sale  the fair values of these financial instruments 
are estimated to approximate their carrying values due to their immediate or shortterm nature  
the group and company’s financial instruments are
• cash and cash equivalents 
• receivables
• trade and other payables 
the carrying amounts for the financial instruments are as follows
30 june 2013 30 june 2012
 
financial assets
loans and receivables measured at amortised cost
 
 
cash and cash equivalents 60669 1537211
receivables 37506 501861
98175 2039072
financial liabilities
other liabilities measured at amortised cost
trade and other payables 610286 375993
610286 375993
in the normal course of its operations the group is exposed to commodity prices currency interest rate liquidity and 
credit risk  financial statements
stellar diamonds plc       53
foreign currency risk
in the normal course of business the group enters into transactions denominated in foreign currencies primarily pound 
sterling as a result the group is subject to exposure from fluctuations in foreign currency exchange rates in general 
the group does not enter into derivatives to manage these currency risks the group attempts to reduce its exposure to 
currency risk by entering into contracts denominated in us dollars whenever possible the group has taken no other 
action to reduce its exposure to foreign currency risk during the year 
30 june 2013 30 june 2012
 
carrying value of foreign currency balances
cash and cash equivalents include balances denominated in
  pound sterling gbp 33421 1114219
receivables include balances denominated in
  pound sterling gbp 37504 91703
trade and other payables include balances denominated in
  pound sterling gbp 220849 121251
the sensitivities set out below are based on financial assets and liabilities held at 30 june 2013 where balances were not 
denominated in the functional currency of the company the sensitivities do not take into account the company’s income 
and expenses and the results of the sensitivities could change due to other factors such as changes in the value of financial 
assets and liabilities as a result of nonforeign exchange influenced factors
closing exchange rate effect on result of gbp strengtheningweakening 10 

at 30 june 2013 1513  9903
interest rate and liquidity risk
fluctuations in interest rates impact on the value of short term cash investments and interest payable on financing activities 
including long term loans giving rise to interest rate risk the company has in the past been able to source financing 
through private offerings this cash is managed to ensure surplus funds are invested in a manner to achieve maximum 
returns while minimising risks in the ordinary course of business the company is required to fund working capital and 
capital expenditure requirements the company typically holds financial assets with a maturity of less than 30 days to 
ensure adequate liquidity and flexibility 
due to the short maturity of the financial assets if interest rates were to double it would have an insignificant impact on 
the company’s financial performance
the company manages its liquidity risk associated with its financial liabilities through the issuance of additional equity and 
continuously monitoring forecast and actual cash flows as required to meet the capital requirements of maturing liabilities 
the following table details the group’s remaining contractual maturity for its nonderivative financial liabilities  
the table has been drawn up based on the undiscounted cash flows of financial liabilities based on the 
earliest date on which the group is required to pay  the table includes both interest and principal cash flows financial statements
54       annual report  accounts 2013
weighted average effective 
interest rate less than 12 months 1 to 5 years
30 june 2013
trade and other payables  610286 
 610286 
30 june 2012
trade and other payables  375993 
 375993 
credit risk
the maximum credit exposure of the company as at 30 june 2013 amounted to 11105010 30 june 2012 12418947 
relating to the company’s cash and cash equivalents and receivables  the directors believe there is limited exposure to credit 
risk as the company’s cash and cash equivalents are held with major financial institutions the credit risk on receivables 
from subsidiaries is significant and their recoverability is dependent on the discovery and successful development of 
economic reserves by those subsidiary undertakings given the nature of the group’s business significant amounts are 
required to be invested in exploration and evaluation activities at different locations the directors manage this risk by 
reviewing expenditure plans and budgets in relation to projects before any monies are advanced to subsidiary undertakings 
in respect of those projects this review ensures that any expenditure is valueenhancing and as a result the amounts 
receivable will be recoverable subject to successful discovery and development of economic reserves  
the company manages its credit risk in cash and cash equivalents by holding surplus funds in high credit worthy financial 
institutions and maintains minimum balances with financial institutions in remote locations
30 june 2013 30 june 2012
 
financial institutions with sp aa rating or higher 34979 1520356
financial institutions unrated or unknown rating 25690 16855
60669 1537211
capital management
the company’s objectives when managing capital are to maintain its ability to continue as a going concern in order to 
provide returns for shareholders and benefits for other stakeholders and to ensure sufficient resources are available to 
meet day to day operating requirements  the capital structure of the company consists of cash and cash equivalents and 
equity attributable to equity holders of the parent comprising issued capital reserves and retained earnings 
the company’s board of directors takes full responsibility for managing the company’s capital and does so through board 
meetings review of financial information and regular communication with officers and senior management
the company expects its current capital resources will be sufficient to carry out its plans and operations through its 
current operating year  the company is not subject to externally imposed capital requirements and there has been no 
change in the overall capital management as at 30 june 2013
notes to the financial statements 
for the year ended 30 june 2013 
continued
stated in us dollars  financial statements
stellar diamonds plc       55
19 subsequent events
following the year end in july 2013 the company allotted and issued a total of 156098036 ordinary shares of 1p each for 
gross proceeds of 24m  
in september 2013 the company issued 20000000 share options with an exercise price of 125p  financial statements
stellar diamonds plc       56
shareholder
information
registered office
burleigh house
355359 the strand
london
wc2r 0hs
t 44 0 207 010 7686
f 44 0 207 010 7699
email infostellardiamondscom
chief executive officer
karl smithson
t 44 0 207 010 7686
company secretary
philip knowles
t 44 0 207 010 7686
nominated adviser and broker
becket house 
36 old jewry 
london 
ec2r 8dd
t 44 0 207 776 6550
f 44 0 207 796 4648
solicitors
gowlings
15th floor
125 old broad street
london ec2n 1ar
united kingdom
t 44 0203 004 3500
f 44 0207 920 9417
auditors 
deloitte  touche
deloitte  touche house
earlsfort terrace
dublin 2
ireland
t 353 01 417 2200
f 353 11 417 2300
registrars
computershare services ireland limited
heron house
corrig road
sandyford industrial estate
dublin 18
designed  printed by centonex  wwwcentonexcom financial statements
57       annual report  accounts 2013
financial statements  355359 the strand
london wc2r 0hs
united kingdom
wwwstellardiamondscom


Summary:
 6       annual report  accounts 2013
overviw
at tongo the jorc compliant diamond resource was increased 
from 660000 carats to 11 million carats through additional 
drilling the diamond grade was confirmed at 120cpht through 
further sampling and the average diamond value modelled at 248 
per carat providing stellar with a very high insitu kimberlite value 
of 298 per tonne
at the droujba project the jorc compliant diamond resource 
was increased from 25 million carats to 31 million carats through 
drilling and sampling a small 700m section of the 5000m long 
katcha dyke which runs adjacent to the droujba pipe the katcha 
dyke has a grade of 140cpht and modelled diamond value of 57 
per carat the project diamond resource could be considerably 
expanded through further dilling and sampling of the katcha dyke 
further bulk sampling of the droujba pipe confirmed a grade of 
88cpht and diamond value of 45 per carat in order to prioritse 
our projects stellar decided to conduct economic scoping studies 
of the existing resources at tongo and droujba projects using 
existing revenues paradigm project management ppm based 
in johannesburg was appointed as independent consultants to 
undertake this work
the conclusion was that the tongo project is currently deemed 
to have better economic potential than the droujba project under 
current market conditions primarily due to the higher diamond 
grade and value of dyke1 compared to the droujba pipe based 
on the work conducted by ppm and extrapolated for the board’s 
assessment tongo has a calculated npv of 53million therefore 
the board decided to prioritise and accelerate the tongo project 
through the feasibility study stage and hopefully towards a 
production decision in the latter part of 2014 although droujba 
has potential for a short term three year open pit mining operation 
producing over 300000 carats a higher diamond price is required 
to make a larger scale mine feasible the company has placed 
droujba on care and maintenance with the economics periodically 
reviewed as the diamond price changes going forward the 
current consensus is that the rough diamond price will increase 
significantly in the next few years and the board believes that 
droujba has the potential to deliver a good return for shareholders
the kono license dispute with the ministry of mines continued 
though little progress has been made towards the reinstatement of 
the two permits that the company believes were wrongly revoked 
legal opinions by local sierra leonean and international based 
lawyers support the company’s position and although the board 
prefers a negotiated settlement it is currently considering its legal 
position in respect of this issue
stellar completed two share placings with new and existing 
shareholders this year raising a total of £26million these funds 
were primarily allocated towards the scoping studies and ongoing 
tongo costs as part of the feasibility study for the year ended 30 
june 2013 the group incurred an operating loss before interest 
tax and impairments of 3m 2012 4m  in addition to this an 
impairment charge of 2m 2012 14m was recognised in the 
year the operating loss is in line with the board’s expectations 
given the group’s stage of development and has been reduced 
steadily over recent years the impairment charge related to the 
droujba project in guinea following the results of the conceptual 
economic scoping study completed in the year and the decision 
to focus on tongo kimberlite project in sierra leone at the balance 
sheet date the group had net assets of 163m and no debt
the rough diamond market continues to show some volatility in 
pricing though a good first half of 2013 was generally reported 
by producers however tight liquidity is an ongoing issue as the 
diamond banks continue to tighten credit lines and a weakening 
rupee has not helped the predominantly indian manufacturers 
nevertheless the fundamentals of the diamond market remain 
robust with a long term supply deficit forecast as rough and 
polished demand is driven by strong growth in chinese and to 
a lesser extent indian and usa diamond jewellery consumption 
although some new diamond mines are coming on stream over 
the next five years these are unlikely to meet the demand growth 
in the longer term and therefore the consensus remains that rough 
prices will significantly increase as a result 
the board believes the next year will be a key milestone in the 
company’s history which will hopefully lead to a positive decision 
in favour of production at the tongo project the board remains 
confident that if the current rough diamond price increases 
with the expected consensus the droujba project will become 
economically viable
i would like to extend my thanks to the continued support of 
shareholders in difficult market conditions your company is well 
positioned to evolve from an exploration to mining company and 
fulfill its strategy of becoming a diamond producer in a market that 
has some of the best economic fundamentals the resource sector 
has to offer i would finally like to thank the stellar management and 
staff for their unwavering commitment to meeting all targets and 
objectives under often very challenging conditions i am confident 
that they will continue to deliver results and with the support of 
shareholders we will take this company to the next level
chairman’s 
statement
dear shareholder
stellar continues to make good progress on 
its strategy of advancing key diamond projects 
towards production this past year we have 
delivered on our objectives of increasing our 
diamond resource base and conducting preliminary 
economic scoping studies at the tongo and 
droujba projects stellar now has a signed off 
inferred resource base of 4 million carats a 29 
increase compared to last year
lord daresbury
nonexecutive chairman
21st november 2013