diamond news, page-38

Gem Diamonds' Rough Sales +48%, Prices +29% Nov 6, 2014 8:56 AM

Gem Diamonds' rough diamond sales jumped 48.4 percent year on year to $61.3 million in the third quarter that ended on September 30. The company sold 23,550 carats during the period compared with 20,405 carats one year earlier and average prices rose 28.7 percent to $2,603 per carat. The mining firm sold an exceptional 197.60-carat diamond from the Letšeng mine in Lesotho for $10.6 million.
Production improved 11 percent at Letšeng during the quarter to 28,365 carats. In addition, the company recovered 4,028 carats from the Ghaghoo mine in Botswana, which opened in September. Gem Diamonds' cash position stood at $128 million.
Clifford Elphick, the CEO of Gem Diamonds, said, "The third quarter of 2014 saw continued strong operational performance at Letšeng as well as the opening of the Ghaghoo mine. The two Letšeng tenders conducted during this period saw an improvement in the dollar per carat prices achieved when compared to the prior quarter. The official opening of the Ghaghoo mine was an important milestone for the company. We are pleased to have completed the construction of the mine on time and within budget and to have overcome the challenges posed by developing a decline through some 80 meters of sand. The first sale of the Ghaghoo production will occur in February 2015 to coincide with the first Letšeng sale in 2015."
The company concluded that diamantaires are cautious heading into the Christmas season. Still, prices achieved for Letšeng's high-value rough production have remained healthy. Overall, the market for both rough and polished diamonds declined in October; however, Gem Diamonds remains optimistic that prices for Letšeng's high-value production will be resilient for the remaining sales of 2014.