annual report  accounts 2014
building a leading diamond company in west africa stellar 
diamonds plc
stellar diamonds aim stel is an african focused diamond company with a 
portfolio of development projects in the prolific diamond regions of guinea 
and sierra leone   the company’s current focus is on trial mining at its baoulé 
kimberlite pipe in guinea for early cash flow generation  additionally stellar is 
progressing its tongo dyke1 project in sierra leone towards the delivery of a 
definitive feasibility study in 2015  
through 2015 stellar diamonds is targeting an increase in its aggregate resource 
base to at least 75 million carats with an insitu value of us1 billion 
contents
overview
3 highlights
45 new joint venture in guinea
67 chairman’s statement
business review
89 chief executive officer’s statement
10 diamond market outlook
11 corporate social responsibility  
1216 baoulé project 
1719 tongo 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 stratigic 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
3132 consolidated and company statement of changes in  
 equity 
33 consolidated and company statement of cash flows
3455 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
75 interest 
earned in 
diamondiferous 
baoulé kimberlite 
pipe
trial mining  
underway  
at baoulé –  
to generate  
cashflo
dfs underway at  
11 million  
carat tongo 
dyke1 increase in 
diamond grade and 
resource expected
baoulé
75 jv interest earned through 
combined asset  funding of us5 
million
inhouse nonjorc diamond 
resource of 22 million tonnes for 
over 3 million carats modelled at an 
expected diamond value of us200ct
trial mining commenced with large 
gem quality diamonds recovered post 
period end
objective to generate regular cash 
flow from baoulé during 2015
definitive feasibility study in progress
bulk sampling completed post 
period end generating a parcel of 
1180 carats
grade of 183cpht recovered a 
53 increase on previous grade of 
120cpht
analysis of surface mining methods 
being conducted to assess routes to 
potential early stage cash flow
revised resource statement and 
project valuation modelling currently 
being updated
tongo 4       annual report  accounts 2014
overview
trial mining at
baoulé and feasibility 
study at tongo
stellar remains focussed on delivering value from its 
advanced portfolio of diamond assets 
trial mining has commenced at the 5 hectare baoulé 
kimberlite project with the objective of producing up 
to 2000 carats per month for the next year  this will 
establish the grade and value of the kimberlite with 
confidence as well as provide regular cash flow to the 
company 
at tongo the feasibility study is progressing and the 
bulk sampling programme has been completed with 
higher grades being recorded than previous work 
this is likely to result in the 11 million carat resource 
being increased 
tongo
location sierra leone
status feasibility study
dyke1 has an established 1074000 carat 
resource at a high grade of 120cpht and excellent 
diamond value of us248 per carat however 
the most recent bulk sampling exercise yielded 
1180 carats at a grade of 183cpht including the 
recovery of larger gem diamonds of up to 67 
carats in size the resource is likely to be increased 
on the basis of these results
as part of the ongoing feasibility study stellar is 
also considering options for surface mining whilst 
underground mine construction is ongoing and 
results suggest that this early cash flow in the life 
of mine could add value to the project  
we intend to continue the feasibility study during 
2015 through the required resource drilling and 
consulting studies and estimate that this could 
be completed in mid2015 should the required 
funding be secured
baoulé
location guinea
status trial mining
the baoulé kimberlite project was secured in 
december 2013 via a 7525 joint venture with 
local guinean partners  stellar has earned its 75 
interest through vesting plant and other mining 
assets and investing cash to a total of us5 
million  
the 5 hectare baoulé kimberlite pipe has been 
accelerated to trial mining and produced first 
carats in september 2014  diamond grades have 
exceeded expectation and good quality gem 
diamonds have been recovered  trial mining will 
continue for at least 12 months to generate cash 
flow and yield up to 2000 carats per month  
geological modelling of the pipe suggests a 
resource of over 22 million tonnes and a diamond 
resource of over 3 million carats stellar diamonds plc       5
overview
kono
location sierra leone
status licence dispute care and 
maintenance
droujba  katcha
location guinea
status care and maintenance
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 established in 2013 us45ct and 
us57ct were deemed too low to justify 
continuation of the projects to mining at that 
time  the projects were therefore placed on 
care and maintenance as stellar focussed on 
the baoulé and tongo projects  
as the diamond market continues to improve 
the economics of droujba and katcha will 
be continually reviewed and with a higher 
diamond price stellar believes these projects 
will become economically viable
stellar continue to pursue diplomatic 
remedies in an effort to recoup stellar’s 
wrongly expropriated kono licences through 
a continued diplomatic and negotiated 
course of action  whilst this has been a slow 
process the company believes it has been 
a more prudent approach to negotiate with 
the government of sierra leone than to 
litigate even though litigation would likely 
be successful according to independent legal 
opinions 6       annual report  accounts 2014
baoulé project
stellar entered into a joint venture ‘jv’ with société 
tassiliman in december 2013 to acquire 75 of the baoulé 
diamondiferous kimberlite pipe in the world famous aredor 
diamond district of guinea the aredor area is renowned 
for the production of large gem quality diamonds over 
many years including numerous stones over 100 and 200 
carats in size these diamonds are all from alluvial sources 
and we believe that baoulé may be one of the primary hard 
rock kimberlite sources for alluvial diamonds mined in the 
area
we believe this deal could be transformational for stellar as 
it gives us exposure to a likely multimillion carat resource 
with substantially higher diamond values than previously 
modelled over the past six months we have moved very 
quickly and commenced trial mining at baoulé with the 
objective of not only creating near term cash flow but also 
generating a sufficiently large diamond resource to justify 
a full scale commercial mining operation 
with mining and processing plant and equipment already 
incountry at our mandala and droujba projects which 
are currently on care and maintenance we were able to 
relocate and reassemble two plants to construct a single 
100tph integrated kimberlite processing plant at baoulé 
without incurring additional capital expenditure 
stripping and mining of the kimberlite pipe commenced 
whilst the plant was assembled and commissioned in 
september and october this year first results have been 
announced whereby 196 carats were recovered at an 
average grade of 17 carats per hundred tonne ‘cpht’ this 
has exceeded our minimum grade expectations of 13cpht 
excitingly large diamonds including gems of 55 carats 
and 51 carats octahedrons have been recovered with 
57 of the stones being classified as gem diamonds and 
43 industrial or neargem which is highly encouraging at 
this early stage of trial mining 
overviw
chairman’s 
statement
dear shareholder
 
tremendous progress has been made during the period 
in developing our flagship projects in guinea and sierra 
leone in line with our strategy to become a significant 
diamond producer focused on the prolific diamond region 
of west africa importantly we have recently commenced 
trial mining at our baoulé kimberlite pipe project in guinea 
which is expected to generate first cash flows this year 
and then on a regular basis throughout 2015 we continue 
to advance our kimberlite dyke project at tongo through 
the feasibility stage and together with ongoing resource 
building at baoulé including the established resource of 
the company’s other projects we are targeting a future 
aggregate resource base for the company of 75 million 
carats which we estimate would have an insitu value of 
us1 billion 
our objective is to process at least 100000 tonnes for 
diamond grade and value estimation over the coming 
months which we expect will yield around 2000 carats 
per month when optimum processing capacity is achieved 
subject to these target amounts being achieved we expect 
to conduct a diamond export and sale every two months 
with our first export being in late 2014
tongo project
we recently completed a second bulk sampling programme 
at our tongo dyke1 project in sierra leone as part of the 
ongoing definitive feasibility study
this dyke has a current inferred jorc resource of 11 million 
carats at a high grade of 120cpht and diamond value of 
us248 per carat which makes it one of the highest dollar 
per tonne kimberlites worldwide
in total 1182 carats have been recovered from the latest 
bulk sampling programme at an average grade of 183cpht 
which is 53 higher than the 120cpht applied in the current 
resource estimate following the reprocessing of the tailing 
material this diamond parcel has been exported to antwerp 
and is currently undergoing valuation and modelling with 
results expected in late 2014 we are delighted with the 
outstanding quality of the diamonds recovered with a large 
proportion of diamonds being classified as gem quality 
several of which are 1 carat in size including a 67 carat 
stone 
although tongo potentially provides us with a lowcapex 
high grade and high margin diamond project with a long life 
of mine that can be extended on addition of the remaining 
dykes underground mining can be challenging and entail 
lengthy development processes before significant cash 
flows are realised in order to address this challenge we 
appointed independent consultants to assess various 
mining options from surface a number of viable options 
have been evaluated to generate cash flow in conjunction 
with the ongoing underground mine construction we 
are currently recalculating the financial model and are 
anticipating an increase in the current npv10 of us53 
million in line with the resourcegrade upgrade and 
surfaceunderground mine plan 
we intend to continue the feasibility study during 2015 
through the required resource drilling and consulting 
studies and estimate that this could be completed in mid
2015 should the required funding be secured stellar diamonds plc       7
lord daresbury
nonexecutive chairman
12th november 2014
business review
chairman’s 
statement cont
other projects
our two additional projects in guinea are currently under 
care and maintenance whilst we focus on delivering value at 
baoulé and tongo in 2013 we reported a resource increase to 
31 million carats at our droujba kimberlite pipe project and an 
economic scoping study has also been completed diamond 
grades at this project range from 88cpht in the droujba pipe 
and 140cpht in the katcha dyke our alluvial mining licence 
at mandala has been renewed for five years where previous 
mining by the company has yielded 128000 carats at a grade 
of 33cpht with gems of up to 37 carats it is estimated non 
jorc that 200000 carats remain within the resource 
our kono licences in sierra leone are still in dispute with the 
ministry of mines however we continue to pursue diplomatic 
remedies to have the licences reinstated underground trial 
mining completed by stellar on the two primary kimberlite 
dykes at kono yielded over 4000 carats of high quality 
diamonds and the return of these licences to stellar would 
obviously return significant value to our portfolio
diamond market
we believe we are mining the right commodity at the right 
time the outlook for the rough diamond market remains 
robust due to the ongoing recovery of the us economy and 
growing chinese and far east demand roughdiamond prices 
have doubled in the past five years jumping around 10 in 2014 
alone with a shortage of new diamond mines worldwide and 
a general long term production decline forecast the directors 
believe stellar will be ideally positioned as an emerging diamond 
producer to benefit from the continued forecast increase in 
rough diamond prices as demand continues to outstrip supply 
funding
during the period we have successfully raised £4m us65m 
through a combination of placings share subscriptions and 
exercising warrants through directors institutions existing and 
new shareholders additionally stellar directors have shown 
their commitment to the company with a number of director 
deals during the period and fees being paid in equity these 
cumulative funds were allocated to advancing the two key 
projects at baoulé and tongo 
whilst capital markets remain challenging for junior resource 
companies we believe that stellar should continue to attract 
investor interest as we continue trial mining at baoulé to 
generate cash flow and also deliver what we expect to be a 
positive feasibility study at tongo 
ebola
being focused on west africa ebola has obviously been a 
considerable concern for stellar since the outbreak and we 
have partnered with international sos in guinea with regards 
to a response plan education and awareness is the key in 
managing this situation and stellar has been at the forefront of 
elevating the threat of ebola and its prevention amongst the 
workforce and the surrounding local communities and civic 
leaders increased levels of sanitation and health screening 
have been established at the baoulé camp and project sites 
and have been rolled out to the homes of the company’s 
employees restrictions on staff travel are also implemented 
and a total ban on travel to the epicenters of the ebola virus 
in guinea is in place we are continuing to monitor the 
situation very closely to ensure the continued wellbeing of 
all employees and that of the local communities
outlook
we believe that our focus on trial mining at baoulé and 
delivering a feasibility study at tongo will continue to 
generate value for our shareholders our near term objective 
is to become a significant diamond producer in the west 
african region at a time when the outlook for rough diamond 
prices and the general sentiment to the diamond sector is 
positive furthermore baoulé with its near term cashflow 
generation and large stone potential and tongo with its high 
grade and high value diamonds and flexible mining options 
offer a compelling investment case 
i would like to take this opportunity to thank our supportive 
shareholder base for the continued support and additionally 
our highly competent team both at the board and 
management level and on the ground their remarkable efforts 
over the period have enabled us to deliver on milestones and 
create significant value as we come closer to our objective of 
becoming a leading diamond producer   8       annual report  accounts 2014
milestones achieved
∞  secured baoulé project and brought into trial  
    mining production
∞  first diamond results exceeded expectations
∞  progressed tongo project to the definitive  
    feasibility stage
∞  dyke1 bulk sampling yielded higher diamond  
    grades and values
∞  maintained excellent health and safety record
business review
ceo’s  
statement
in guinea our efforts have been focussed on establishing 
trial mine production over the 5 hectare baoulé kimberlite  
during 2013 we targeted this kimberlite and were delighted 
in december 2013 to sign a joint venture with local group 
tassiliman  this jv entitled stellar to earn a 75 interest 
through expenditure of us5 million  we took the view 
to accelerate this earnin through the vending in of our 
existing diamond processing plants and machinery that 
were unutilised at the mandala and droujba sites coupled 
with cash expenditure we achieved this earnin during the 
year and are now 75 holders of the project
the baoulé pipe has significant potential  it is large 
outcrops at surface is diamondiferous and we believe 
is a source kimberlite of some of the large bonanza 
stones that have been discovered by alluvial mining in the 
immediate area over the past decades  we have internally 
modelled 22 million tonnes of ore in the pipe which at a 
minimum grade of 13cpht suggests a target resource of 
3 million carats  our initial results have been reported at 
17cpht and based on the quality and size of diamonds we 
see it is not unreasonable to expect a diamond value of 
us200 per carat or higher this gives us a target insitu 
value for baoulé of at least us600 million
we decided that trial mining of the baoulé pipe was the 
preferred route to creating value from this project in the 
shorter term  we achieved this within six months from 
concept postperiod end through relocating our 100tph 
and 5tph dms plants to the baoulé project area and re
erecting them in a configuration that could process 
both decomposed and harder kimberlite  considering 
that this was done in the midst of the rainy season and 
the ebola outbreak is testament to the skills calibre and 
determination of our team in guinea
our first results from baoulé have confirmed our belief that 
the pipe has viable grade and contains a large diamonds 
stone size distribution  the presence of a number of five 
carat stones within the first 200 carats recovered gives 
us all cause for excitement  we plan to trial mine baoulé 
for at least 12 months in order to produce 2000 carats 
per month which will not only yield cash flow but also 
provide a high level of confidence in the grade and value 
of the pipe hopefully to include some large high value 
stones in the process  we furthermore intend to drill out 
the resource during the next year so that at the end of 
the trial mining period we can have an independently 
declared resource and prefeasibility study that could be 
used as justification to move to larger scale commercial 
production
at tongo in sierra leone the 11 million carat dyke1 
resource was advanced to the definitive feasibility study 
stage  the established high resource grade of 120cpht 
and high diamond value of us248 per carat makes dyke
1 one of the highest insitu value kimberlites worldwide in 
dollar per tonne terms us298 per tonne
in order to advance the feasibility study it was necessary 
to undertake another phase of bulk sampling  this 
commenced in late 2013 as it is a relatively long lead time 
to collect process and evaluate the required sample  
the bulk sampling was completed just after the report 
period and results announced  the recovered grade for 
the 1180 carats yielded from the sample was calculated 
at 183cpht which is significantly higher than the 120cpht 
resource grade  this would indicate that the 11 million 
carat resource would be increased on the basis of the 
higher grade  furthermore the continued presence of 
excellent high value diamonds in the bulk sample was 
encouraging to see particularly a 67 carat octahedral 
gem  stellar therefore retained independent consultants 
to update the tongo resource statement and the report is 
expected before the end of the year
the year has been a both exciting and productive one for stellar we were able to not only secure a joint 
venture on a high value kimberlite pipe in guinea but also bring it into trial mine production within six 
months  first reported results from baoulé were excellent and exceeded expectations furthermore the 
results generated from the bulk sampling element of the tongo feasibility study returned significantly 
higher grades than previously established and with the continued excellent diamond quality  this no 
doubt points to a larger resource and higher value proposition for tongo
  stellar diamonds plc       9
karl smithson
chief executive officer
business review
the kono licence issue is unfortunately ongoing though 
i remain optimistic for a favourable outcome  we have 
followed a diplomatic approach to resolving the wrongful 
expropriation of our licence and i believe this is making 
solid progress i believe the government of sierra leone 
will want to do all it can to attract serious and long term 
investment into the country particularly as its economy will 
suffer a big set back from the wide reaching consequences 
of ebola
with two high value projects such as baoulé and tongo that 
can provide a combination of cash flow growing resources 
and long life of mine potential stellar is on a very sound 
footing to generate significant shareholder value however 
we are tempered with challenges such as the ebola 
outbreak in west africa difficult financial markets and the 
perceived wider regional political risk cumulatively these 
effects act as a drag on the stellar share price even though 
our progress of derisking the assets and adding value at the 
project level is undisputed
i do not see these challenges as insurmountable though  
we have been present in the west african region for 14 
years and have seen significant change for the better in 
that time we know how to operate in the region and have 
done it successfully often in the most adverse of conditions  
ebola will be defeated and the economies will recover with 
the help and support of the private sector and particularly 
those companies in the mining space  
the diamond sector is arguably the best in the commodity 
space right now and has a superior outlook on the supply
demand fundamentals which will ensure that the ongoing 
price appreciation continues for the longer term  the 
growth in wealth and the middle classes in china and india 
are driving rough and polished diamond demand and this is 
largely supported by the largest diamond consumer in the 
world the usa where diamond demand is directly linked 
to gdp growth  new mines coming on stream will not fill 
the gap in demand and the long lead times into developing 
a diamond mine mean that supply will remain constrained
stellar’s continued development would not be possible 
without the support of our shareholders and for that i am 
very grateful  during the financial year we successfully 
raised and invested us6 million on our growth projects 
in very challenging market conditions  we are now in a 
position where baoulé should be selfsustaining during the 
trial mining period which is a major achievement
finally i would like to acknowledge and thank each and 
every one of our staff  led with great determination to 
succeed by chief operating officer rowan carr our team 
have delivered on their operational objectives time after 
time and this is to be commended considering the severe 
challenges faced this past year  with such spirit we can only 
succeed in the future
ceo’s 
statement cont 10       annual report  accounts 2014
australia 381
botswana 3625
russia 3114
canada 1906
south africa 1185
zimbabwe 538
row 3336
381 
3625 
3114 
1906 
1185 
538 
3336 
australia 
botswana 
russia 
canada 
south africa 
zimbabwe 
row 
business review
annual rough diamond production in 2013 was recorded 
at just over 130 million carats an increase on 2012 but 
still considerably lower than the peak production years 
of pre2009 circa 170mcts  the value of this rough  
production was calculated to be us141 billion  
2012 us126 billion which was driven by an increase in 
the average price per carat of us108 2012 us99ct 
as the rough market continued to show positive pricing 
increases 
botswana and russia remain the most important  
producing countries by volume and value  production in  
zimbabwe is forecast to decline considerably as high 
grade and easy to mine alluvial deposits are exhausted  
canadian production will increase with the gahcho kue 
and foxtrot mines coming on stream in the next few years  
there is no expected significant increase in production 
from any other country in the short to medium term
due to the ongoing lack of diamond exploration and the 
long lead times to bring new diamond mines on stream 
it is therefore unlikely that rough production will increase 
significantly in the longer term with estimates of peak 
production being reached in 2017  most new diamond 
production will come from existing mines or discoveries 
made a number of years ago examples gahcho kue in 
1995 and bunder in 2004 and this additional production 
is unlikely to meet long term demand  mckinsey 2014 
forecast that a number of mines will cease production 
over the next 10 years due to depletion of resources or 
higher capital and operating costs and then production  
will decline
the decline in diamond production however will have 
a positive effect on diamond pricing which may sustain 
some higher cost producing mines  furthermore the 
growing economic development and wealth in emerging 
countries particularly china and india will continue to 
drive demand for luxury goods including diamond jew
ellery  for example de beers estimates that the middle 
classes of china and india will grow 129 and 72 respec
tively from 2013 to 2018 continued gdp growth in the 
developed world and particularly the usa which remains 
the largest consumer market for diamonds will further 
underpin the demand for rough and polished diamonds 
rough diamond prices in 2014 were generally strong 
in the first half of the year 7 according to de beers 
and flat to weaker in the second half of the year  some 
producers attribute this to the seasonality of the rough 
market with most restocking of manufactures taking 
place in the first half  however there has been a general 
tightening of credit in the buying market during the year 
particularly since the planned closure of the antwerp di
amond bank which provided funding to rough diamond 
buyers  stellar believes that the current liquidity problems 
may therefore cause periods of volatility in the short term 
rough diamond market but the medium to longer term 
supplydemand fundamentals will be overwhelmingly in 
favour of diamond price appreciation
diamond market  
outlook
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
global production ctsm 159 177 176 168 163 125 133 124 128 130
value us bn 102 116 121 121 127 86 12 144 126 141
source kimberley process 2014
australia 117
botswana 232
russia 379
canada 106
south africa 81
zimbabwe 104
row 286
117 
232 
379 106 
81 
104 
286 
australia 
botswana 
russia 
canada 
south africa 
zimbabwe 
row 
production mcts production value m
total 2013 rough diamond production 
1304 million carats
total 2013 rough diamond production 
value of us 141 billion stellar diamonds plc       11
business review
corporate social 
responsibilit y  considering stellar’s focus in west africa there has been 
an appreciable amount of concern over the outbreak of 
the ebola virus 
although the operations at the tongo and baoulé project 
sites have not been directly affected by the outbreak 
stellar has endeavoured to be at the forefront of elevating 
awareness amongst workers local communities and civic 
leaders of the threat and prevention of the ebola virus 
extensive education and awareness programmes have been 
implemented by the company and this has been supported 
by in the introduction of a number of precautionary initiatives 
to mitigate the potential risk the virus could potentially 
pose furthermore donations of cash food and sanitation 
equipment have been made at the government community 
and staff levels to contribute to the fight against ebola
outside of the ebola initiatives stellar continues to 
contribute in a positive and sustainable way to the 
development of the nearby local communities
ebola awareness training at sonaferia
in guinea stellar has completely rehabilitated 60km of 
road network between its mandala and baoulé projects  
this has completely opened access transport links to the 
population and commercial interests in an area where this 
was previously very difficult  in sierra leone roads are 
maintained in and around the tongo project and there 
is continued support for the community school which 
stellar had previously rehabilitated and renovated  stellar 
pays the costs of teaching staff at this school so that 
the local children can receive an education  in addition 
stellar has partnered with local community development 
groups in sierra leone and guinea and contributes 
financially to ongoing initiatives on an annual basis
stellar’s policy of training and developing its own staff 
has been a particular success  the company employs 
very few expatriate staff and instead relies on key citizens 
in most areas of responsibility that have been trained to 
industry standards by stellar
temperature reading at baoule project
baoule to mandala road rehabilitation june 2014
employee families with sanitation kits 12       annual report  accounts 2014
baoulé
business review
baoulé open pit
following the 
signing of the stellar 
diamonds – tassiliman 
jv agreement on 4 
december 2013 this 
project has advanced 
at an accelerated pace 
to a point where the 
first diamonds were 
recovered in september 
2014 the dismantling 
transportation relocation 
and reassembly of two treatment 
plants together with mining 
machinery and equipment mostly 
during the rainy season demonstrates 
stellar’s capability under tough conditions 
including an ebola epidemic 
by october steady state production had been achieved 
with 196 carats recovered from kimberlite ore running 
at an average grade of 17 cpht 125mm cutoff 
exceeding the minimum grade expectation of 13 cpht 
10mm cutoff a number of larger stones have been 
recovered greater than five carats suggesting the pipe 
could have a large stone size distribution over 50 of 
the diamonds recovered are classified as gem quality
the company’s objective is to continue trail mining 
over the next 12 months in order to generate 
cashflow and determine the commercial diamond 
grade and value for the project such a large sample will 
establish the presence and quality of any larges stones 
in the pipe for which the aredor region of guinea is 
world renowned 
licence tenture
the baoulé project is secured under arrété a20132149
mmgsgg and is currently in its second year of a semi 
industrial mining permit valid for five years the licence 
is in the process of being transferred into the name 
of the joint venture company ressources tassiliman 
baoulé sa in accordance with articles 90  91 of the 
guinean mining code under this licence the company 
is conducting large scale bulk sampling  trail mining 
the bandankoro  aredor diamond 
area of guinea
the licence is located in the renowned former diamond 
concession of aredor which has historically produced 
the largest and highest value diamonds in guinea 
numerous high quality diamonds of over 200 carats 
in size have been recovered from commercial alluvial 
mining operations in the last 25 years such as a 255 
carat stone which was sold for us10million in 1989 
and a 285 carat stone which was sold for us8million 
in 1993
baoulé stellar diamonds plc       13
business review
stellar believes that the baoulé kimberlite pipe may be one of the sources of the high value baoulé alluvial diamonds in 
the aredor region extensive artisanal mining has taken place downstream of the pipe and the discovery of at least one 
100 carat stone has been reported some 7km downstream an indicated alluvial diamond resource at an average value of 
us431 per carat was previously defined by an international consulting group  this was confirmed in the late 1990’s by 
aredor fcmc which mined and produced diamonds at average values in excess of us400 per carat 
summary of the baoulé pipe and previous work
discovered in 1999 the baoulé kimberlite pipe was subject to drilling and initial bulk sampling by earlier operators a valuable 
geological database is available on the project which shows that the pipe was delineated to 5 hectares in size and drilled to 
a maximum depth of 190m but remains open at depth microdiamond analysis returned modelled macrodiamond grades 
of between 20 to 40 carats per hundred tonnes “cpht” though bulk sampling yielded lower grades 1mm of 7cpht and 
13cpht using pan plant and dms technology respectively in 2000 a parcel of 509 carats produced by the pan plant and 
which did not contain any large stones was sold for us157 per carat
inhouse modelling of previous drilling suggests a target of 22 million tonnes to a depth of 300m at the dms generated 
grade of 13cpht this would suggest a target of 3 million carats however using the average microdiamond grade of 30cpht 
this target increases to 65 million carats these are not industry compliant resource calculations but internal company 
modelling that suggests the baoulé pipe has the potential to host a significant diamond resource 
stellar believes the previous bulk 
sampling was not representative of 
such a large pipe and that there is 
potential for higher grades using 
more representative controlled and 
efficient processing techniques  
furthermore the diamond value 
was based on a relatively small 
parcel which contained no recorded 
large diamonds and which was sold 
over 13 years ago stellar believes 
there will be considerable upside 
on the diamond price for this pipe 
and estimates that the parcel sold 
in 2000 for us157 per carat could 
realistically achieve prices in excess 
of us200 per carat in the current 
market cross section model showing eastern lobe
resource estimate based on grade of 132 cpht recovered from kerouane dms plant using 
forecasted 2013 diamond value
resource estimate based on micro diamond modelled grade ranging from 20  40 cpht using 
forecased 2013 diamond value
projected depth geological zone density volume mass grade resource value
contained in situ 
value
m sg m³ tonnes cpht carats usct us m
upper weathered 030m 205 789523 1618522 132       213645         200 427                        
lower fresher kimberlite 275 7476179 20559492 132       2713853       200 5428                      
total 8265702 22178014 132       2927498     200 5855                    
0  300
projected depth geological zone density volume mass grade resource value
contained in 
situ value
m sg m³ tonnes cpht carats usct us m
upper weathered 030m 205 789523 1618522 300       485557         200 971                     
lower fresher kimberlite 275 7476179 20559492 300       6167848      200 12336                
total 8265702 22178014 300       6653404    200 13307             
0  300 14       annual report  accounts 2014
business review
large scale bulk sampling  trail mining objective
rather than repeat the original phased bulk sampling work 
stellar decided to fast track the project and proceed directly 
to trail mining of the 5ha kimberlite pipe using stellar’s 
existing incountry owneroperated processing plants and 
mining equipment then located at the mandala and droujba 
projects the objective of the trail mining programme is 
to collect and process a minimum of 100000 tonnes of 
kimberlite over a 12 month period in order to generate 
cashflow and determine the commercial diamond grade 
and value for the project such a large sample will establish 
the presence and quality of any larges stones in the pipe 
for which the aredor region of guinea is world renowned 
any diamonds produced will be sold into the market and 
proceeds reinvested back into the project 
trail mining progress
during q2 and q3 2014 stellar dismantled transported and relocated its 100 ton per hour dms processing plant from 
its mandala alluvial diamond project and its 5 ton per hour dms bulk sampling plant located at the droujba kimberlite 
evaluation project to their new location at the baoulé project the company retained adp metco to reconstruct the 
plants and combine them into a fully integrated kimberlite processing plant with sufficient capacity to achieve the project 
objectives provision has been made to process both weathered and fresh hard kimberlite material 
joint venture agreement
stellar signed a joint venture agreement “jva” at the end of 2013 with local company société tassiliman “tassiliman” 
over the baoulé licence area covering 1km2 which hosts the 5 hectare diamondiferous kimberlite pipe tassiliman the 
licence holder is a guinean incorporated company headed by the wellrespected and prominent businessman el hadj 
mohammed moustapha kaba
during the year stellar achieved its earn in of a 75 interest in the property through the expenditure of us5 million through 
combined asset  funding  stellar has the option but not the obligation to purchase at an independently assessed fair 
market value the remaining 25 of the project upon agreement by tassiliman should this option be taken then tassiliman 
will be granted a 2 net profit royalty on any future production revenues upon vesting its 75 interest stellar initiated the 
creation of a new company ressources tassiliman baoulé and the licence is currently in the process of being transferred 
ressources tassiliman baoulé will be the joint venture vehicle for further development of the asset  
a management committee has been established with tassiliman to determine and approve annual work programmes and 
expenditures stellar will remain operator of the project at all times and during production will retain full rights to marketing 
the diamonds on behalf of the joint venture company
baoulé bulk sample pit
dismantling frp final recovery assembled stellar diamonds plc       15
business review
while the integrated plant was being constructed a significant amount of earthmoving and stripping of previously 
dug ground by artisanal diggers and waste material over the 5ha pipe had to be carried out in order to reach suitably 
undisturbed kimberlite for processing side wall stability proved to be an issue and benching was required in order to 
access the pit safely several different types of material ie lateritised kimberlite and brecciated kimberlite were stockpiled 
and treated during the commissioning phase 
baoulé to mandala road rehabilitation june 2014
commissioning of the dms plant commenced in 
september 2014 post period end during which the plant 
was tested and head feed throughput observed to establish 
optimum operational parameters despite the wide variety 
of ore types presented the plant was able to treat the 
material however some modifications were required once 
the plant was deemed to be operating efficiently in terms of 
diamond recovery processing of stockpiled decomposed 
green hypabyssal kimberlite commenced 
measurements of specific gravity bulk density and water 
content were undertaken from a carefully measured mini
bulk sample of 1802 wet tonnes in order that the diamond 
grade could be established accurately during processing 
baoulé pit cleaned
processing of the first green hypabyssal kimberlite ore at 
the baoulé pipe has delivered excellent initial results  not 
only has the grade exceeded minimum expectations but 
the recovery of three five carat diamonds two of which 
are of excellent gem quality and shape from a 196 carat 
diamond parcel is encouraging  these positive signs 
suggest that baoulé has a large stone size distribution 
which would be consistent with our expectations 
knowing that the aredor area of guinea has produced 
some spectacular stones over many years  at the time of 
writing the processing plant had reached “steady state” 
production with a throughput of approximately 50 wet 
tonnes per hour being achieved on a 2 x 8 hour shift basis 
a first diamond export is planned for late november 2014 
which will signal the beginning of our cycle of exports and 
sales for the duration of the trial mining period
mvt1 levelled pit 16       annual report  accounts 2014 stellar diamonds plc       16
business review
diamond results
initial results were reported in october 2014 whereby a total of 19557 carats were recovered at a 125mm cut off giving 
a grade of 168cpht  this compares favourably with the historically reported 1mm grade of 13cpht  including the 332 
carats recovered from commissioning of the plant with lower grade material a total of 22877 carats were recovered to 
that date
encouragingly a number of larger diamonds were recovered from this relatively small sample including two octahedral 
gem diamonds weighing over five carats each  a third five carat diamond was also recovered though this is of lower 
quality  the presence of these five carat diamonds plus a number of other diamonds greater than one carat in size 
could suggest that the baoulé pipe has a large stone size distribution  gem diamonds represent approximately 57 of the 
diamond population recovered with 43 being classified as industrial or near gem 
sample
diluted dry 
tonnes
carats
125mm 
grade cpht
number of 
diamonds
average 
stone size 
 carat
diamonds 
greater than 1
carat
gem 
diamonds 
greater than 
1carat
nongem 
diamonds 
greater than 1
carat
commissioning 302 332 11 204 016 2 14ct 38ct
kimberlite 1164 19557 168 1327 015 15
55ct 51ct 
30ct 19ct 
13ct 12ct
597ct 23ct 
22ct 
16ct13ct 
11ct 10ct
totals 1466 22877 156 1531 015 17
the complete treatment plant stellar diamonds plc       17
tongo
during the year further bulk 
sampling was conducted on 
the high grade and high value 
dyke1 as part of a definitive 
feasibility study  over 
1100 carats of high 
quality diamonds were 
recovered including a 67 
carat gem at a recovered grade 
of 183cpht which is far higher 
than the previously established 
resource grade of 120cpht
a new resource statement is being 
prepared which will probably result in a 
significantly higher declared jorc resource for 
the dyke1 deposit  in addition the company 
has commissioned a study into options for 
surface mining of dyke1 that can realise 
early cash flows as the underground mine is 
being developed thus enhancing the value 
proposition of the project  these reports will be 
announced towards the end of 2014
the company’s objective over the coming year 
is to fast track dyke1 through the feasibility 
stage and into declaring a mine
licence tenture
el482012 is currently in its third 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  
definitive feasibility study
at the end of the previous financial year stellar completed 
an economic scoping study which delivered positive results 
and a project npv of us53 million  the company therefore 
decided to advance the tongo project through the feasibility 
stage during 2014 in partnership with paradigm project 
management ppm out of south africa
2014 bulk sampling and results
as part of the feasibility study it was decided that additional 
bulk sampling of dyke1 would be required to generate a 
parcel of diamonds that could complement the previous 
bulk sampling work in 2012  this earlier work yielded 1169 
carats of diamonds from dyke1 at a grade of 120cpht and 
modelled average diamond value of us248 per carat
the recent bulk sampling followed the same methods and 
techniques as 2012  the kimberlite was drilled and blasted 
from surface and all ore and waste was extracted from the 
sample trench and hauled to the 5tph dms processing plant 
located some 600m away  
business review
all samples collected from dyke1 at tongo 
were completely processed by midaugust 2014 
including second pass tailings material a total 
of 1621t of diluted kimberlite and granite was 
collected from the bulk sample trench by drilling 
and blasting in a number of subsamples termed 
sample 7 8 9 10 and 12 these samples were 
processed in their batches with the dms plant 
bottom cut off set at 10mm 
detailed measurement of the sample trench during 
sample collection enabled the volume and tonnage 
of the insitu kimberlite to be measured a total of 
6446t of kimberlite was processed and yielded 
11818 carats at an average insitu 10mm grade 
of 1833cpht this is 49 higher than the current 
resource grade estimate of 120cpht grades varied 
across the subsamples but all were higher than 
the resource grade sample 10 yielded the highest 
grade of 3184cpht and was comprised of highly 
decomposed kimberlite resulting in a higher total 
liberation of diamonds than from fresher kimberlite  a total of 53 diamonds larger than 1 carat have been recovered with the two largest stones being 67 and 46 carats a 
large proportion of the goods are of excellent shape colour and clarity  two diamond exports were made to antwerp 
during the year so that the 1181 carats could be valued under current market conditions  these results are expected to be 
announced towards the end of 2014
18       annual report  accounts 2014
business review
sub sample
kimberlite 
volume m³
total 
volume m³
dry tons 
undiluted
dry tons 
diluted
weight carat
dry diluted 
grade cpht
dry undiluted 
grade cpht
7 139 269 364 714 60 84 1648
8 175 541 36 1444 883 611 1917
9 1077 1975 2951 5364 3823 713 1296
10 1272 4243 1511 5255 4813 916 3186
12 427 1231 116 3315 1701 513 1467
totals 3091 8259 6446 16095 118180 734 1833
cross section map showing locatiuon of subsamples of the bulk sampling on dyke1
dyke1 jorc resource
the existing inferred jorc resource for 
dyke1 is shown in the table opposite  with 
the higher recovered bulk sample grade it 
is likely that this resource will be increased
tongo dyke1
upgraded resource 
nov12
tonnes 895000
grade cpht 120
carats in resource 1074000
diamond value lower usct 225
diamond value mid usct 2475
diamond value upper usct 270
us value per tonne insitu at average us2475ct value 297
surface mining study
stellar commissioned ppm to undertake a study into the options for surface mining at tongo dyke1  the objective of this 
study is to determine the financial impact on having access to cash flow from surface production whilst the underground 
mine development is ongoing  in the conceptual economic scoping study ppm determined that a 300m shaft and 
associated underground mining infrastructure would take up to two years to develop before first production and cash 
flows were realised  stellar recognises the potential difficulty in attracting investors on this basis even though the longer 
term 17 year life of mine production and financial model for the project are very positive  therefore innovative solutions 
and options to accelerate production cash flow and enhance the value proposition of tongo need to be examined  this 
report is due for release towards the end of 2014
future work
the current 1074000 carat 
resource of dyke1 is being revised 
based on the new bulk sampling 
generated this work comprises 
part of the ongoing definitive 
feasibility study which requires the 
following work to be completed 
• new resource statement to be completed
• up to 8000m of drilling to further define the geological model at depth and 
bring the resource from the inferred to the indicated level as required for a dfs
• microdiamond sampling from the kimberlite intersections at depth so that the 
grade continuity can be confirmed across the ore body
• detailed mine planning capital and operating budgets
• revised financial model
• environmental and social impact studies
• reporting and announcement of the dfs stellar diamonds plc       19
business review
tongo project map
additional resource potential
stellar has previously emphasised the additional 
resource potential from the tongo project  there are 
four kimberlite dykes on the property and yet only 
dyke1 has been brought into the resource category 
to a depth of 300m similar dyke mines in south 
africa are still in production at 700m below surface 
so there is certainly longer term mining potential to 
be determined by deeper drilling at dyke1
the other three kimberlites are all significantly 
diamondiferous based on previous work and can be 
brought into the resource category in the future  
• dyke2 is 800m long and is 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  
 
• dyke3 is 500m long and is 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 
 
• dyke4 is 1km long and is located 1km to the northwest of 
dyke1  previous but limited bulk sampling yielded a grade 
of 110cpht and a diamond value of us140 per carat though 
the diamond parcel was less than 100carats and therefore not 
very representative of the larger resource potential 
tongo processing plant tongo diamonds 20       annual report  accounts 2014
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 
liviu meran  nonexecutive director
liviu meran joined the board in september 2014  he is a romanian national 
who holds a bachelor’s degree in trade economy and a master’s degree in 
marketing from the academy of economic studies in bucharest mr meran has 
previously worked as a senior treasury accountant at cuprom corporation 
from 2005 to 2008 and as chief financial officer at sc foradex sa from 2008 
to 2010 mr meran became financial manager at foradex corporation in 2010 
and then became general manger of foradex corporation in january this 
year foradex invest srl the holding company of foradex corporation is a 
259 shareholder of stellar 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 2014
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 2014
strategic report
governance
strategy
our strategy is the appraisal and exploitation of the assets currently owned simultaneous with this process the group’s 
management expects to continue to use its expertise to potentially acquire further licence interests for diamond 
exploration the group is currently advancing two key projects towards production
in guinea stellar entered into a joint venture agreement on the baoulé project in december 2013 whereby stellar will 
earn a 75 interest in the project through 5m of expenditure on the project  at the time of this report this requirement 
has been met through a combination of expenditure and vending in assets to the project and the licence is in the 
process of being transferred to a new joint venture company in which stellar will hold its 75 interest  
the baoulé project is now in a trial mining phase which has the dual aim of producing a large bulk sample for resource 
definition and feasibility purposes and also of producing cash flows to the group  this phase of work is expected to 
last 6 to 12 months and subject to cash flows from any expected diamond sales and external funding stellar plans to 
advance the project through feasibility and subject to satisfactory results into production
in sierra leone the tongo project has already been advanced through the resource definition and economic scoping 
study phases and the company is currently engaged in the definitive feasibility stage  this stage of development 
involves the collection and processing of a 1000 carat bulk sample further resource drilling and the engagement of 
independent consultants to complete the other aspects of feasibility such as mine plans plant designs environmental 
and social impact studies and financial modelling  to date stellar has completed the bulk sampling element of the 
feasibility and plans to complete the drilling and consultancy elements in 2015  after this and subject to satisfactory 
results stellar will look to advance the tongo project into production
stellar’s short to medium term vision is to become a midtier diamond producer
this can be achieved through the development of existing key assets through to production and through growing our 
portfolio of assets in the west african region building on our unique knowledge of and expertise within the area  over a 
number of years the company has positioned itself in the region through building strong local and national connections 
in the countries in which we operate and through training and developing a strong local workforce utilising local skills 
and expertise wherever possible   we have a strong management team with extensive experience in diamonds and in 
african projects particularly in west africa
by developing projects through the feasibility stages stellar plans to utilise alternative forms of financing to pure equity 
financing through the debt markets offtake agreements or strategic investments and thus limit future dilution to 
shareholders  we are also looking at ways of attaining early cash flows to reduce funding requirements as we are doing 
at baoulé
business review
stellar diamonds plc is a uk registered company focused on diamond development in west africa 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
the loss after taxation for the year amounted to 4060549 2013 loss 4998492
no dividends have been paid or are proposed for the year 2013 nil
further developments
the directors intend to continue their involvement with the licences as disclosed in the chairman’s statement they 
continue to seek further acquisition opportunities in relation to diamond exploration
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 
environmental rehabilitation and other legislation within the group’s areas of operations stellar diamonds plc       25
governance
corporate governance and 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
going concern
information in relation to going concern is disclosed in note 12 of the financial statements 
financial risk management
details of the group’s financial risk management policies are set out in note 18 to the financial statements
risks and uncertainties
the group is subject to a number of potential risks and uncertainties which could have a material impact on the long
term performance of the group and could cause actual results to differ materially from expectation 
the management of risk is the collective responsibility of the board of directors and the group has developed a range 
of internal controls and procedures in order to manage risk the following risk factors which are not exhaustive are the 
principal risks relevant to the group’s activities
risk nature of risk and mitigation
licence obligations operations must be carried out in accordance with the terms of each licence agreed with 
the relevant ministry for natural resources in the host country typically the law provides that 
operations may be suspended amended or terminated if a contractor fails to comply with 
its obligations under such licences or fails to make timely payments of relevant levies and 
taxes the group submits six monthly operational reports to the ministry of mines and also 
has regular communication and meetings with relevant government bodies to discuss future 
work plans and receive feedback from those bodies country managers in each jurisdiction 
monitor compliance with licence obligations and changes to legislation applicable to the 
company and report as necessary to the board
requirement for further 
funding
stellar is reliant upon raising funds largely through equity at its current stage of development  
additionally future plans to bring tongo into production and later baoulé into full scale 
production will be reliant on the company’s ability to raise both debt and equity or through 
strategic partnerships at larger levels than previously undertaken by the company  financial 
markets remain weak making the raising of funds for projects difficult
the company has in place management reporting procedures both financial and operational 
that are robust and frequent enough to ensure that project elements are delivered on time 
and on budget  by doing so it proves to shareholders and potential investors that it is able to 
deliver on promises and will use funds and future funds wisely  by completing the definitive 
feasibility at tongo the company aims to derisk the project to the point where debt funding 
can be secured  at baoulé the planned cash flow positive trial mining is expected to also 
reduce the company’s future nearterm funding risks
the board regularly reviews group cash flow projections and considers different sources 
of funds the group regularly meets with shareholders and the investor community and 
communicates through their website and regulatory reporting
strategic report cont 26       annual report  accounts 2014
governance
lord daresbury
 
chairman
12 november 2014
strategic report cont
risk nature of risk and mitigation
geological and 
development risks
diamond exploration and evaluation projects carry clear inherent risks of failing to identify 
economic projects  failure of a key project to be proven to be financially viable would have 
a significant impact on the company’s ability to achieve its vision of becoming a midtier 
producer in the medium term
the company has taken the t ongo project through the various recognised steps of exploration 
identification and initial evaluation of targets resource building and prefeasibility over recent 
years thus derisking the project  the project shows clear economic viability up to this stage 
and as such the company is confident of a positive definitive feasibility study in 2015  at 
baoulé the company has studied previous data on the asset to determine that trial mining has 
a strong chance of proving the long term commercial viability of the asset and also providing 
positive cash flows in the short term
political and licence 
title risks
stellar’s key projects are situated in guinea and sierra leone  both countries have had political 
instability in the recent past as is common with emerging economies  in recent years the 
political situation in both countries has stabilised with a number of democratic elections 
having been held however political risk still remains as was seen by stellar in 2012 with the 
arbitrary revocation of its kono licence
the management of stellar continue to build strong ties with the governments and mining 
ministries of countries in order to avoid potential conflicts in the future  forging strong ties 
with local partners and other senior figures at local and national level has been a significant 
part of this and this strategy will continue
country risks there are inherent risks when operating in developing countries in west africa  in recent 
months the region has seen the rapid spread of the ebola virus which has been well publicised  
there is an obvious risk to the company of this virus impacting on its workforce and its ability 
to operate effectively in the region
company health policies have been updated in light of this recent outbreak in order to reduce 
the risk of exposure to the virus of its workforce and local communities and additional health 
and safety measures have been put in place such as temperature screening additional 
sanitation facilities and movement restrictions and monitoring as well as significant time 
spent educating local communities and workers on how to remain safe
in addition to the above there can be no assurance that current exploration programmes will result in profitable 
operations  the recoverability of the carrying value of exploration and evaluation assets is dependent upon the 
successful discovery of economically recoverable reserves the achievement of profitable operations and the ability of 
the group to raise additional financing if necessary or alternatively upon the group’s and company’s ability to dispose 
of its interests on an advantageous basis  changes in future conditions could require material write down of the carrying 
values of the group’s assets
approval of the board
this strategic report contains certain forwardlooking statements that are subject to the usual risk factors and 
uncertainties associated with the natural resources exploration industry while the directors believe the expectation 
reflected within the annual report to be reasonable in light of the information available up to the time of their approval 
of this report the actual outcome may be materially different owing to factors either beyond the group’s control or 
otherwise within the group’s control for example owing to a change of plan or strategy
accordingly no reliance may be placed on the forwardlooking statements
on behalf of the board stellar diamonds plc       27
directors
during the year under review the following directors held office
directors’ interests
the directors’ interests in the ordinary shares of the company as of 30 
june 2014 are disclosed in note 17 of the financial statements  
substantial shareholdings
at 30 june 2014 and 06 november 2014 so far as the company is 
aware the only holdings of 3 or more in the issued share capital are
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 2014  
share capital
between 24 july and 16 august 2013 a total 
of 156098036 ordinary shares of 1p each 
were allotted and issued for gross proceeds 
of 2416114
on 18 december 2013 a total of 28628545 
ordinary shares of 1p each were allotted 
and issued for gross proceeds of 513026  
on 26 february 2014 a further 28628545 
ordinary shares of 1p each were allotted and 
issued for gross proceeds of 525119 on 
exercise of warrants issued at the time of the 
december 2013 placing
on 27 may 2014 a total of 148179476 
ordinary shares of 1p each were allotted and 
issued for gross proceeds of 3118993  
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
directors’ report
governance
lord daresbury
nonexecutive chairman
n karl smithson 
chief executive officer
james campbell 
nonexecutive director 
resigned 30 september 2014
  luis guilherme cabrita da silva
  nonexecutive director
   
  steven j poulton 
  nonexecutive director
  dr markus elsasser
  nonexecutive director
30 june 14 6 november 14
foradex invest srl 2318 2590
ubs deutschland 918 886
nassim funds 632 610
aureus mining inc 441 426
hottinger adam  co 605 583
blackrock investment 
management uk limited 507 489
barclayshare stockbrokers limited 428 468
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 12th november 2014 and signed on its behalf by
n karl smithson
lord daresbury 28       annual report  accounts 2014
statement of 
directors’ 
responsibilities 
governance
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 under that law the directors 
have elected 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 financial statements
stellar diamonds plc       29
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 2014  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 
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 auditor
as explained more fully in the directors’ responsibilities statement 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 annual report to identify material inconsistencies with the audited financial 
statements and to identify any information that is apparently materially incorrect based on or materially inconsistent 
with the knowledge acquired by us in the course of performing the audit  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 2014 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
30       annual report  accounts 2014
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
12 november 2014
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 15754794  and property plant and equipment of 2323641 included in the consolidated 
statement of financial position and intangible assets of 1302561 investment in subsidiaries of 4157484 and 
amounts due from subsidiaries of 13658076 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 4060549 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 financial statements the company in addition to applying ifrss as adopted by the european 
union has also applied ifrss as issued by the international accounting standards board iasb
in our opinion the financial statements comply with ifrss as issued by the iasb
opinion on other matters prescribed by the companies act 2006
in our opinion the information given in the strategic report and 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 financial statements
stellar diamonds plc       31
consolidated statement 
of comprehensive income 
for the year ended 
30 june 2014 
stated in us dollars financial statements
32       annual report  accounts 2014
consolidated and company 
statement of financial 
position as at 30 june 2014
stated in us dollars
the financial statements of stellar diamonds plc registered number 5424214 were approved by the board of directors and authorised 
for issue on 12th november 2014 they were signed on its behalf by
n karl smithson lord daresbury financial statements
stellar diamonds plc       33
consolidated statement of 
changes in equity 
for the year ended 
30 june 2014 
stated in us dollars
notes 
share premium   share premium comprises of a premium arising on the issue of shares
warrant reserve   warrant reserve arises on the grant of warrants
share option reserve  share option reserve arises on the grant of share options under the share option plan
reverse acquisition reserve  reverse acquisition reserve arose on the reverse acquisition of stellar diamonds ltd in 2010
accumulated loss   accumulated loss comprises of losses incurred in the current and prior year financial statements
34       annual report  accounts 2014
company statement of 
changes in equity 
for the year ended 
30 june 2014 
stated in us dollars
notes 
share premium   share premium comprises of a premium arising on the issue of shares
warrant reserve   warrant reserve arises on the grant of warrants
share option reserve  share option reserve arises on the grant of share options under the share option plan
foreign currency translation reserve the translation reserve arises from the translation of foreign operations  
accumulated loss   accumulated loss comprises of losses incurred in the current and prior year financial statements
stellar diamonds plc       35
consolidated and company 
statement of cash flows 
for the year ended 
30 june 2014 
stated in us dollars financial statements
36       annual report  accounts 2014
notes to the financial 
statements 
for the year ended 
30 june 2014
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 2014  the comparative 
period presented is audited financial statements as of and for the year ended 30 june 2013
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 4060549 and had cash and cash equivalents of 1358671 at the balance sheet date
during the year the group raised just under 66m through three placings and a warrant exercise following the year end in 
october 2014 the group raised a further 06m for the purchase of additional earth moving vehicles for the baoulé project 
in guinea
in october 2014 the baoulé project moved into trial mining production  this exercise is anticipated to provide positive cash 
flows to the group from january 2015 though until the first parcel of stones is completed and sold anticipated to be before 
the end of 2014 the full economics of the trial mining exercise will not be known  if results are in line with management’s 
expectations the requirement for further working capital for the group would be greatly reduced
in addition to the anticipated cash flows from baoulé 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 
trial mining joint ventures sale of assets 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
stellar diamonds plc       37
notes to the financial statements for the 
year ended 30 june 2014 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  
• 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
• ifric 20 – stripping costs in the production phase of a surface mine 1 january 2013
• 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 2013
• ifrs 11 – joint arrangements 1 january 2013
• ifrs 10 – consolidated financial statements 1 january 2013
• ias 28 revised may 2011 – investments in associates and joint ventures 1 january 2013
• ias 27 revised may 2011 – separate financial statements 1 january 2013
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  
• annual improvements to ifrss 20122014 cycle 1 january 2016
• amendments to ifrs 10 and ias 28  sale or contribution of assets between an investor and its associate or joint 
venture 1 january 2016
• amendments to ias 27  equity method in separate financial statements 1 january 2016
• ifrs 9 – financial instruments 1 january 2018
• amendments to ias 16 and ias 41  agriculture bearer plants 1 january 2016
• ifrs 15  revenue from contracts with customers 1 january 2017
• amendments to ias 16 and ias 38  clarification of acceptable methods of depreciation and amortisation 1 january 
2016
• amendments to ifrs 11 may 2014  accounting for acquisitions of interests in joint operations 1 january 2016
• ifrs 14  regulatory deferral accounts 1 january 2016
• annual improvements to ifrss 20112013 cycle 1 july 2014
• annual improvements to ifrss 20102012 cycle 1 july 2014
• amendments to ias 19  defined benefit plans employee contributions 1 july 2014
• 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
• ifric 21 – levies 1 january 2014
• amendments to ifrs 10 ifrs 12 and ias 27 oct 2012  investment entities 1 january 2014 financial statements
38       annual report  accounts 2014
notes to the financial statements for 
the year ended 30 june 2014 continued
stated in us dollars 
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
212 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
213 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 
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 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 financial statements
stellar diamonds plc       39
notes to the financial statements for the 
year ended 30 june 2014 continued
stated in us dollars 
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 
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 
• 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 financial statements
40       annual report  accounts 2014
notes to the financial statements for 
the year ended 30 june 2014 continued
stated in us dollars 
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 risk free 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  
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  
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’ financial statements
stellar diamonds plc       41
notes to the financial statements for the 
year ended 30 june 2014 continued
stated in us dollars 
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
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 financial statements
42       annual report  accounts 2014
notes to the financial statements for 
the year ended 30 june 2014 continued
stated in us dollars 
211 warrants
proceeds from the issuance of warrants net of issue costs are credited to the warrants reserve the warrants reserve is non
distributable and will be transferred to the share premium account upon the exercise of warrants the balance of the warrants 
reserve in relation to the unexercised warrants at the expiry of the warrants period will be transferred to accumulated profits
212 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
• the costs incurred or to be incurred in respect of the transaction can be measured reliably
213 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
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 financial statements
stellar diamonds plc       43
notes to the financial statements for the 
year ended 30 june 2014 continued
stated in us dollars 
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 
companies issued by the london stock exchange plc alternative investment market
214 investment in subsidiaries
investments in subsidiaries are stated at cost less any impairment allowance  
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
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
• baoulé guinea
• other exploration and
• 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 2014  financial statements
44       annual report  accounts 2014
notes to the financial statements for 
the year ended 30 june 2014 continued
stated in us dollars 
3 segments continued
following is an analysis of the group’s revenue results assets and liabilities by reportable segment for the year ended 30 
june 2013 
4 loss for the year
loss for the year has been arrived at after chargingcrediting
30  financial statements
stellar diamonds plc       45
notes to the financial statements for the 
year ended 30 june 2014 continued
stated in us dollars 
5 staff costs
the average monthly number of employees including executive directors was 153 30 june 2013 161  the remuneration 
of key management personnel is further disclosed in note 17
746622 of staff costs were capitalised as exploration and evaluation expenditure during the year and consequently are 
not included in the statement of comprehensive income 2013 632504
6 income tax expense
the analysis of the group’s taxation charge for the year based on the company’s statutory tax rate of 23 is as follows
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 4800841 30 june 2013 4148298 based on carried forward tax 
losses of 14418592 30 june 2013 of 12083105 which expire 10 years from the date these were incurred
32  financial statements
46       annual report  accounts 2014
7 loss per share
8 intangible assets
notes to the financial statements for 
the year ended 30 june 2014 continued
stated in us dollars 
basic and diluted loss per share is the same as the effect of the outstanding share options and warrants are antidilutive and 
are therefore excluded outstanding share options and warrants are detailed in note 14 and note 13 respectively
at 30 june 2014 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 15754794 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 213
in the year ended 30 june 2012 a dispute emerged in relation to the two exploration licenses held for the kono project 
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 financial statements
stellar diamonds plc       47
notes to the financial statements for the 
year ended 30 june 2014 continued
stated in us dollars 
37 
8 intangible assets continued
since the dispute arose the company has made considerable efforts to resolve the issue with the ministry  in the view of 
the directors the fact that no other operators have been present on the licence since the licence was revoked together 
with the company’s continued lobbying of the ministry and other interested parties indicates an increased likelihood 
that the licences will be reissued in due course  however given the time that has elapsed since the initial revocation 
of the licences and the continued uncertainty of the timing of any resolution the directors believe that it is prudent to 
impair the expenditure on the kono asset during its time on care and maintenance since the revocation of the licence 
which has previously been capitalised as evaluation and exploration expenditure  this impairment amounts to 760000  
further expenditure on the kono licence until such a time as the licence is returned will be expensed through the profit 
and loss account
9 investment in subsidiaries
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 213 the directors have considered the recoverable 
amounts of investments in subsidiaries and do not consider that any impairment is necessary
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 2014 was 4060548 
year ended 30 june 2013 3998493 
the whollyowned subsidiaries of the company at 30 june 2014 are financial statements
48       annual report  accounts 2014
notes to the financial statements for 
the year ended 30 june 2014 continued
stated in us dollars 
11 property plant and equipment
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 valueinuse 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
the group did not have any further contractually committed costs for the acquisition of property plant and equipment 
at 30 june 2014  
the realisation of tangible assets of 2323640 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 213 financial statements
stellar diamonds plc       49
notes to the financial statements for the 
year ended 30 june 2014 continued
stated in us dollars 
12 trade and other receivables
trade and other receivables are noninterest bearing and are generally repayable within 90 days amounts due from 
subsidiaries are noninterest bearing and are repayable on demand 
therefore the directors consider the carrying amount of trade and other receivables to be approximately equal to their 
fair value
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 213  financial statements
50       annual report  accounts 2014
notes to the financial statements for 
the year ended 30 june 2014 continued
stated in us dollars 
13 share capital and share premium
share capital
authorised    
unlimited number of ordinary shares of 1p and deferred shares of 4p each
in july and august 2013 a total of 156098036 ordinary shares of 1p each were allotted and issued for gross proceeds of 
2416114  transaction costs of 112102 were netted against share premium  156098036 warrants were also issued see 
below and their fair value of 253757 was netted against share premium
in december 2013 a total of 28628545 ordinary shares of 1p each were allotted and issued for gross proceeds of 513026  
transaction costs of 22500 were netted against share premium  on 26 february 2014 a further 28628545 ordinary 
shares of 1p each were allotted and issued for gross proceeds of 525119 on exercise of the warrants issued at the time of 
the december 2013 placing and transaction costs of 22500 were netted against share premium
in may 2014 a total of 148179476 ordinary shares of 1p each were allotted and issued for gross proceeds of 3118993  
transaction costs of 155384 were netted against share premium
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
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 financial statements
stellar diamonds plc       51
notes to the financial statements for the 
year ended 30 june 2014 continued
stated in us dollars 
13 share capital and share premium continued
share warrants
the warrants reserve represents the value of the warrants issued by the company to subscribe for shares in the 
company  
on 16 august 2013 156098036 warrants to subscribe to 156098036 ordinary shares of 1p each for a price of 2p per 
share warrant were issued in relation to the placing of 156098036 ordinary shares in the company  the warrants issued 
have resulted in a charge of 253757 using the blackscholes option pricing model and the following assumptions nil 
dividend yield a weighted average expected volatility of the company’s share price of 78 a weighted annual risk free rate 
of 1608 and an expected life of one year
on 18 december 2013 28628545 warrants to subscribe to 28628545 ordinary shares of 1p each for a price of 11p per 
share warrant were issued in relation to the placing of 28628545 ordinary shares in the company  the warrants issued 
have resulted in a charge of 11824 using the blackscholes option pricing model and the following assumptions nil 
dividend yield a weighted average expected volatility of the company’s share price of 43 a weighted annual risk free rate 
of 1749 and an expected life of 72 days  these warrants were exercised on 26 february 2014
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 september 2013 the company issued a total of 20000000 share options at an exercise price of 125p  the options issued 
have resulted in a charge of 254100 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 114 a weighted average annual risk free rate of 1748 and an expected life of five years 
in may 2014 the company issued a total of 21350000 share options at an exercise price of 15p  the options issued have 
resulted in a charge of 354974 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 125 a weighted average annual risk free rate of 1942 and an expected life of five years 
the following is a summary of the share options outstanding and exercisable as at 30 june 2014 and 30 june 2013 and 
changes during the year financial statements
52       annual report  accounts 2014
notes to the financial statements for 
the year ended 30 june 2014 continued
stated in us dollars 
14 share options continued
options with a fair value at date of grant of 23856 expired during the year and as a result were transferred to retained 
earnings 
as at 30 june 2014 the following stock options were outstanding and exercisable
15 provision
the provision relates to the rehabilitation of the mandala and bomboko mines  the timing of potential 
rehabilitation costs is uncertain
16 trade and other payables
the carrying amount of trade and other payables is approximately equal to their fair value financial statements
stellar diamonds plc       53
notes to the financial statements for the 
year ended 30 june 2014 continued
stated in us dollars 
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
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 financial statements
54       annual report  accounts 2014
notes to the financial statements for 
the year ended 30 june 2014 continued
stated in us dollars 
17 related parties continued
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
the number of directors to whom retirement benefits are accruing is nil 2013 nil 
all remuneration in the current year related to short term employee benefits financial statements
stellar diamonds plc       55
notes to the financial statements for the 
year ended 30 june 2014 continued
stated in us dollars 
18 financial instruments
the fair value of a financial instrument is defined as the price that would be received to sell an asset or paid to transfer a 
liability in an orderly transaction between market participants at the measurement date
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 financial statements
56       annual report  accounts 2014
notes to the financial statements for 
the year ended 30 june 2014 continued
stated in us dollars 
18 financial instruments continued
the sensitivities set out below are based on financial assets and liabilities held at 30 june 2014 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
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
stellar diamonds plc       57
notes to the financial statements for the 
year ended 30 june 2014 continued
stated in us dollars 
18 financial instruments continued
credit risk
the maximum credit exposure of the company as at 30 june 2014 amounted to 13724040 30 june 2013 11105010 
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
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 2014
19 subsequent events
on 16 october 2014 a total of 25560016 ordinary shares of 1p each were allotted and issued for gross proceeds of 
630798  there were no transaction costs related to the issue  12780008 warrants to subscribe to 12780008 ordinary 
shares of 1p each for a price of 155p per share warrant were issued in relation to the placing with an expiry date of 30 
april 2015  the full proceeds of this share issue were used to purchase certain earth moving equipment for the baoule 
and tongo projects
in august 2014 the 156098036 outstanding warrants at 30 june 2014 expired without being exercised stellar diamonds plc       58
shareholder
information
designed  printed by centonex  wwwcentonexcom
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
nominated adviser
cairn financial advisers llp
61 cheapside
london ec2v 6ax
united kingdom
t  44 020 7148 7900
f  44 020 7148 7909
solicitors
gowlings
15th floor
125 old broad street
london ec2n 1ar
united kingdom
t 44 0203 004 3500
f 44 0207 920 9417
broker
daniel stewart  company plc
becket house
36 old jewry
london ec2r 8dd
united kingdom
t 44 0 207 776 6550
f 44 0 207 796 4648
registrars
computershare services ireland 
limited
heron house
corrig road
sandyford industrial estate
dublin 18
company secretary
philip knowles
t 44 0 207 010 7686
auditors 
deloitte  touche
deloitte  touche house
earlsfort terrace
dublin 2
ireland
t 353 01 417 2200
f 353 11 417 2300  355359 the strand
london wc2r 0hs
united kingdom
wwwstellardiamondscom


Summary:
 6       annual report  accounts 2014
baoulé project
stellar entered into a joint venture ‘jv’ with société 
tassiliman in december 2013 to acquire 75 of the baoulé 
diamondiferous kimberlite pipe in the world famous aredor 
diamond district of guinea the aredor area is renowned 
for the production of large gem quality diamonds over 
many years including numerous stones over 100 and 200 
carats in size these diamonds are all from alluvial sources 
and we believe that baoulé may be one of the primary hard 
rock kimberlite sources for alluvial diamonds mined in the 
area
we believe this deal could be transformational for stellar as 
it gives us exposure to a likely multimillion carat resource 
with substantially higher diamond values than previously 
modelled over the past six months we have moved very 
quickly and commenced trial mining at baoulé with the 
objective of not only creating near term cash flow but also 
generating a sufficiently large diamond resource to justify 
a full scale commercial mining operation 
with mining and processing plant and equipment already 
incountry at our mandala and droujba projects which 
are currently on care and maintenance we were able to 
relocate and reassemble two plants to construct a single 
100tph integrated kimberlite processing plant at baoulé 
without incurring additional capital expenditure 
stripping and mining of the kimberlite pipe commenced 
whilst the plant was assembled and commissioned in 
september and october this year first results have been 
announced whereby 196 carats were recovered at an 
average grade of 17 carats per hundred tonne ‘cpht’ this 
has exceeded our minimum grade expectations of 13cpht 
excitingly large diamonds including gems of 55 carats 
and 51 carats octahedrons have been recovered with 
57 of the stones being classified as gem diamonds and 
43 industrial or neargem which is highly encouraging at 
this early stage of trial mining 
overviw
chairman’s 
statement
dear shareholder
 
tremendous progress has been made during the period 
in developing our flagship projects in guinea and sierra 
leone in line with our strategy to become a significant 
diamond producer focused on the prolific diamond region 
of west africa importantly we have recently commenced 
trial mining at our baoulé kimberlite pipe project in guinea 
which is expected to generate first cash flows this year 
and then on a regular basis throughout 2015 we continue 
to advance our kimberlite dyke project at tongo through 
the feasibility stage and together with ongoing resource 
building at baoulé including the established resource of 
the company’s other projects we are targeting a future 
aggregate resource base for the company of 75 million 
carats which we estimate would have an insitu value of 
us1 billion 
our objective is to process at least 100000 tonnes for 
diamond grade and value estimation over the coming 
months which we expect will yield around 2000 carats 
per month when optimum processing capacity is achieved 
subject to these target amounts being achieved we expect 
to conduct a diamond export and sale every two months 
with our first export being in late 2014
tongo project
we recently completed a second bulk sampling programme 
at our tongo dyke1 project in sierra leone as part of the 
ongoing definitive feasibility study
this dyke has a current inferred jorc resource of 11 million 
carats at a high grade of 120cpht and diamond value of 
us248 per carat which makes it one of the highest dollar 
per tonne kimberlites worldwide
in total 1182 carats have been recovered from the latest 
bulk sampling programme at an average grade of 183cpht 
which is 53 higher than the 120cpht applied in the current 
resource estimate following the reprocessing of the tailing 
material this diamond parcel has been exported to antwerp 
and is currently undergoing valuation and modelling with 
results expected in late 2014 we are delighted with the 
outstanding quality of the diamonds recovered with a large 
proportion of diamonds being classified as gem quality 
several of which are 1 carat in size including a 67 carat 
stone 
although tongo potentially provides us with a lowcapex 
high grade and high margin diamond project with a long life 
of mine that can be extended on addition of the remaining 
dykes underground mining can be challenging and entail 
lengthy development processes before significant cash 
flows are realised in order to address this challenge we 
appointed independent consultants to assess various 
mining options from surface a number of viable options 
have been evaluated to generate cash flow in conjunction 
with the ongoing underground mine construction we 
are currently recalculating the financial model and are 
anticipating an increase in the current npv10 of us53 
million in line with the resourcegrade upgrade and 
surfaceunderground mine plan 
we intend to continue the feasibility study during 2015 
through the required resource drilling and consulting 
studies and estimate that this could be completed in mid
2015 should the required funding be secured stellar diamonds plc       7
lord daresbury
nonexecutive chairman
12th november 2014
business review
chairman’s 
statement cont
other projects
our two additional projects in guinea are currently under 
care and maintenance whilst we focus on delivering value at 
baoulé and tongo in 2013 we reported a resource increase to 
31 million carats at our droujba kimberlite pipe project and an 
economic scoping study has also been completed diamond 
grades at this project range from 88cpht in the droujba pipe 
and 140cpht in the katcha dyke our alluvial mining licence 
at mandala has been renewed for five years where previous 
mining by the company has yielded 128000 carats at a grade 
of 33cpht with gems of up to 37 carats it is estimated non 
jorc that 200000 carats remain within the resource 
our kono licences in sierra leone are still in dispute with the 
ministry of mines however we continue to pursue diplomatic 
remedies to have the licences reinstated underground trial 
mining completed by stellar on the two primary kimberlite 
dykes at kono yielded over 4000 carats of high quality 
diamonds and the return of these licences to stellar would 
obviously return significant value to our portfolio
diamond market
we believe we are mining the right commodity at the right 
time the outlook for the rough diamond market remains 
robust due to the ongoing recovery of the us economy and 
growing chinese and far east demand roughdiamond prices 
have doubled in the past five years jumping around 10 in 2014 
alone with a shortage of new diamond mines worldwide and 
a general long term production decline forecast the directors 
believe stellar will be ideally positioned as an emerging diamond 
producer to benefit from the continued forecast increase in 
rough diamond prices as demand continues to outstrip supply 
funding
during the period we have successfully raised £4m us65m 
through a combination of placings share subscriptions and 
exercising warrants through directors institutions existing and 
new shareholders additionally stellar directors have shown 
their commitment to the company with a number of director 
deals during the period and fees being paid in equity these 
cumulative funds were allocated to advancing the two key 
projects at baoulé and tongo 
whilst capital markets remain challenging for junior resource 
companies we believe that stellar should continue to attract 
investor interest as we continue trial mining at baoulé to 
generate cash flow and also deliver what we expect to be a 
positive feasibility study at tongo 
ebola
being focused on west africa ebola has obviously been a 
considerable concern for stellar since the outbreak and we 
have partnered with international sos in guinea with regards 
to a response plan education and awareness is the key in 
managing this situation and stellar has been at the forefront of 
elevating the threat of ebola and its prevention amongst the 
workforce and the surrounding local communities and civic 
leaders increased levels of sanitation and health screening 
have been established at the baoulé camp and project sites 
and have been rolled out to the homes of the company’s 
employees restrictions on staff travel are also implemented 
and a total ban on travel to the epicenters of the ebola virus 
in guinea is in place we are continuing to monitor the 
situation very closely to ensure the continued wellbeing of 
all employees and that of the local communities
outlook
we believe that our focus on trial mining at baoulé and 
delivering a feasibility study at tongo will continue to 
generate value for our shareholders our near term objective 
is to become a significant diamond producer in the west 
african region at a time when the outlook for rough diamond 
prices and the general sentiment to the diamond sector is 
positive furthermore baoulé with its near term cashflow 
generation and large stone potential and tongo with its high 
grade and high value diamonds and flexible mining options 
offer a compelling investment case 
i would like to take this opportunity to thank our supportive 
shareholder base for the continued support and additionally 
our highly competent team both at the board and 
management level and on the ground their remarkable efforts 
over the period have enabled us to deliver on milestones and 
create significant value as we come closer to our objective of 
becoming a leading diamond producer