Five diamonds fetches over US$ 11.0 million
Unveiling the report for 3Q Gem Diamonds focussed upon the performance of Letšeng Mine & terms of the renewed mining lease were agreed with the Lesotho Mining Board, following a successful statutory negotiation process. The lease is renewed for an immediate period of 10 years with an exclusive right granted to Letšeng to renew the mining lease for a further period of 10 years.
Updated guidance for 2019 with improved ore tonnes treated, lower unit costs, lower capex and marginally lower carat sales. While recovered four diamonds greater than 100 carats during the Period, bringing the total to seven for the nine-month period to 30 September 2019, Gem Diamonds sold 25 631 carats during the Period, achieving an average price of US$ 1 417 per carat (Q2 2019 had earned US$ 1 501 per carat. Sold 5 diamonds for more than US$ 1.0 million each, generating revenue of US$ 11.0 million during the Period.
Gem Diamonds' CEO, Clifford Elphick, commented, “It is pleasing to report that Gem Diamonds has successfully renewed the mining lease for Letšeng with the Government of the Kingdom of Lesotho, and we look forward to continue the shared value creation long into the future.
Letšeng's high-value large diamond production has experienced price pressure during the Period. This, together with diamonds sold from the lower value ore mined in the previous quarter, resulted in an average price achieved of 6% lower than the previous quarter.”
Looking Diamond Market from Gem Diamonds perspective, prices for smaller and commercial type goods remain under pressure with polished inventory levels remaining high. A recovery in these prices is expected in the medium term. Larger high-quality diamonds have also experienced some price pressures in 2019, contributing to the lower prices achieved during the Period.
