Gem Diamonds Limited reported on 25 July 2017 that the average price per carat achieved at its Letšeng project in Lesotho rose to US$1,779 during the first six months of 2017, a 20-percemt rise as compared to the US$1,480 achieved during the preceding six month period (H2 2016) on account of an improvement in the number of over-100-carat stones recovered.
According to its trading update, during the period, four diamonds greater than 100 carats were recovered. Two more exceptional diamonds of 98.42 and 80.58 carat, both D-colour Type IIa diamonds, were recovered. Total recovery during the period was 50,478 carats at a grade of 1.59cpht. Eighteen diamonds were sold for more than US$1 million each, generating revenue of US$37 million. After June 30, an exceptional 126.75 carat D-colour Type IIa diamond was also recovered.
Gem Diamonds’ CEO, Clifford Elphick commented: “The improvement in the greater-than-100-carat diamond recoveries at Letšeng is encouraging with the price per carat achieved trending positively at US$1,779, up 20% from US$1,480 in H2 2016. The market for Letšeng’s high-quality diamonds has remained firm over H1 2017 with the last tender of the period achieving over US$2,200 per carat. This positive trend has continued with the most recent July tender achieving an average price of US$2,385 per carat. A group-wide, externally supported cost efficiency and bench-marking review has commenced and has already identified opportunities that are being actively pursued. Further progress on this review will be reported on during Q4.”
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