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Gem Diamonds’ Letšeng mine continued to polish its reputation as the world’s richest source of large diamonds, the London-listed company reported in a management statement covering July to October.
Almost one diamond per week were found that were sold for more than $1 million and 50 roughs fetched prices greater than $20,000/ct; one fancy pink went for $156,000 /ct. Letšeng also recovered 171 diamonds greater than 10.8 ct in size.
During the first nine months of the year, Letšeng sales rose 97% to $215.7 million. Excluding the 550ct Letšeng Star sold for $16.5 million last month, the mine averages sales of $2,425/ct.
MINING.com reported last week Gem (LON:GEMD) sold the world’s 14th largest white diamond discovered at Letšeng two months ago for $16.5 million in cash. Gem will also share in the profit of any polished diamond cut from the 550 carat Letšeng Star.
Without the occasional large diamond find, the Letšeng pipe would probably be a marginal deposit, but the mine, 30% owned by the King of Lesotho, has also yielded the the 478 carat Light of Letšeng that went for $18.4 million in 2008 and two other big rocks. The company is in the feasibility stage of expanding Letšeng with the board meeting this month to advance the project to increase plant capacity to 10 million tonnes from the current 5.7 million tonnes a year.
Gem said rough diamond prices in the sector were down by up to 35% and polished prices fell by up to 15% from the mid 2011 highs. However, prices for the exceptional quality diamonds remained fairly robust as was evidenced by the top six diamonds on Letšeng’s October 2011 tender each exceeding $40,000 per carat, headlined by a fancy pink diamond which achieved $156,000 per carat. The October 2011 sale (excluding the sale of the 550ct Letšeng Star) achieved an average value of US$2 300 per carat. During the first nine months of the year, Letšeng sales rose 97% to $215.7 million
Gem Diamonds sales from its Ellendale mine in Australia rose 68% year on year to $23.7 million as volume increased 9% to 23,393 carats. The average price achieved rose 55% to $1,015 per carat. This included 3,918 carats of fancy yellow diamonds for an average $5,193 per carat. During the first nine months of the year Ellendale sales rose 20% to $56.9 million.
On October 28, 2011 Gem Diamonds completed the sale of its 80% interest in its alluvial diamond mining company, PT Galuh Cempaka in Indonesia, for $5 million. The company also stated that the first stage development of the Ghaghoo diamond mine in Botswana remains on schedule and within budget.
Gem said in an effort to lift net margins at least 20% during the year a total of 326 carats have been extracted for own manufacturing at a rough market value of $11.7 million, of which $8.6 million worth of polished diamonds have been sold.
Image courtesy of the company. Key Facts about the Letšeng Star: 550 cts (pre-boiling 553 cts), documented, D colour, Type IIa, No fluorescence.
Comments
Solwandlet
The 30 per cent is not owned by the King of Lesotho but by the Lesotho Government.