News: Kimberley Diamonds downgrades guidance

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Kimberley Diamonds Limited (ASX:KDL) has today announced that its pricing negotiations with Tiffany & Co have been unsuccessful. Kimberley was seeking a price increase in its supply of premium fancy yellow diamonds to the cutting and polishing arm of Tiffany to finance developments at its Ellendale Mine in Western Australia. The failure of the anticipated price increase will impact Kimberley’s forecast revenue and 2014 full year results. Therefore the company is down-grading its guidance to revenue of circa $20 million with Q4 earnings of $1.5 million. Kimberley Diamonds also said it will have to review its previous strategy and development plans and will update the market further in due course. 

Kimberley Diamonds reported a loss of $6.9 million for the half year ended 31 December 2013.