Gem Diamonds Recovers 98.42-Ct, D-color, Type II Diamond at Letseng

(IDEX Online) – Gem Diamonds has recovered a 98.42-carat high quality D-color Type II diamond at its Letseng mine in Lesotho which the miner said will be sold in June.

In a trading update for the first quarter of 2017, the company said it sold 39,950 carats for an average price of $1,636 per carat for the first three tenders of this year, up 13 percent from $1,444 per carat from the fourth quarter of last year.

An 8.65-carat pink diamond sold for $164,855 per carat, making it the sixth highest price per carat achieved by a Letšeng rough diamond.

A 114.38-carat Type II diamond was sold into a partnership arrangement, with Letšeng to share in additional margin on the final polished diamonds.

Eleven diamonds sold for more than $1.0 million, generating revenue of $20.4 million.

Gem Diamonds' CEO, Clifford Elphick commented: "Letšeng 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 Letšeng with the $ per carat achieved trending positively.

"The market for Letšeng'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 improving near-term cash flows, and we expect to see the benefits emerge during 2017."

The miner added that new Chairman, Harry Kenyon-Slaney, will assume his position on 6 June, replacing retiring Chairman, Roger Davis.