Paragon Diamonds Predicts up to $160m in Revenue from Lesotho Mines
June 29, 15
(IDEX Online News) – Paragon Diamonds announced that production at its Lemphane and Mothae mines will begin in Lesotho later this year, with the company predicting that once they are fully operational, the mines could generate annual revenue of $160 million.
The company said it had laid the foundations for "significant growth" as it prepares to move its Lesotho-based Lemphane kimberlite project into diamond production later this year.
In addition, Paragon is in the final stages of acquiring the Mothae kimberlite mine from Canada's Lucara Diamond after signing a Memorandum of Understanding (MOU) in May to acquire a 75-percent equity stake.
"With supply struggling to keep up with rising demand, securing a source of large investment grade stones is key,” said executive chairman Philip Manduca.
“Thanks to the progress made during the year under review, we have what we believe are two impressive development projects located in a renowned diamondiferous region of Lesotho."
Within the next three years, Paragon expects that in the two sites will produce in excess of 100,000 carats, with average values exceeding $1,500 per carat at current prices. According to Paragon’s calculations, this could provide a combined profit of roughly $97 million.
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In their first year of production, the two mines are estimated to generate combined revenues of around $36 million.