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Gem Diamonds recovers high quality 98.42 carat diamond

23 May 2017 09:38

Gem Diamonds has recovered a 98.42 carat high quality D-colour Type II diamond which will be sold in June.

The company said Letseng had recovered larger better quality diamonds during the three months to the end of March and it was encouraging that during April and May, there was a notable improvement in the size and quality of diamonds recovered.

It said 39,950 carats from Letseng were sold in the three months to the end of March for an average price of US$1,636 per carat - up 13% from US$1,444 per carat in the previous period, Q4 2016.

An 8.65 carat pink diamond achieved US$164,855 per carat, making it the sixth highest price per carat achieved by a Letseng rough diamond and a 114.38 carat Type II diamond was sold into a partnership arrangement, with Letseng to share in additional margin on the final polished diamonds.

It said 11 diamonds sold for more than US$1.0m generating revenue of US$20.4m and on 3 May, an exceptional 80.58 carat D-colour Type II diamond was recovered which would be sold in June.

The company also reported zero lost time injuries for the period.

Chief executive Clifford Elphick said: "Letseng has recovered larger better quality diamonds during the period and it is encouraging that during April and May, there was a notable improvement in the size and quality of diamonds recovered at Letseng with the US dollar per carat achieved trending positively.

"The market for Letseng's high-quality diamonds has remained firm over the period and this is anticipated to continue into H2 of this year.

"In addition, the revised life of mine plan was implemented during February with the objective of reducing waste tonnes mined and improve near term cash flows, and we expect to see the benefits emerge during 2017."

At 9:38am: (LON:GEMD) Gem Diamonds Ltd share price was +0.5p at 90.5p

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