diamond news

Firestone Diamonds reported that revenue fell 75% to $4M for the fiscal year that ended June 30, while its net loss declined 50% to $11M. The company said it would sell its BK11 mine in Botswana in 2015 and focus solely on commissioning the Liqhobong mine in Lesotho.

Gem Diamonds sold a 198ct., type IIa rough diamond for $11M ($53,746/ ct.) that was recovered at its Letšeng mine. The company said that the price achieved was in line with its colour, clarity and expected polished yield. Gem Diamonds did not reveal who bought the diamond.

Mountain Province Diamonds plans to raise $89M in equity to fund the development of its Gahcho Kué project. Three Canadian banks will underwrite a private placement of 15M shares at $4.50 each, and 5M shares will be offered in a non-brokered placement to qualified investors at the same share price.

ALROSA reported that its September polished diamond auction garnered $3M from the sale of 65 lots totaling 192.91 carats. The top lot was a round diamond larger than 10 carats that earned $592,360, while a 16ct. fancy yellow diamond sold for $486,000.

The Catoca mine in Angola saw a sharp decline in net profit in 2013 due to escalating costs despite the higher revenue and average diamond prices that were achieved.
Sales of rough diamonds from the mine rose 3 percent year on year to $594.4 million in 2013, as the average price rose 4 percent to $89.68 per carat (see figure). However, Catoca’s net profit decreased 24 percent to $100 million, which management attributed to costly regulatory changes and increased operating expenses.