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Gem Diamonds' Letšeng Sales +57% in 4Q
Jan 28, 2014 4:41 AM
By Deena Taylor
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RAPAPORT... Gem Diamonds reported that rough diamond sales from the Letšeng mine in Lesotho jumped 57 percent year on year to $75.6 million in the fourth quarter of 2013. The average price of the goods rose 49 percent mainly due to strong prices achieved for exceptional quality diamonds recovered from Letšeng's satellite pipe. Letšeng's production fell 10 percent year on year to 27,227 carats mainly due to increased waste stripping in line with the mine plan and requirements to access satellite pipe ore.
The company sold 29,825 carats for an average of $2,533 per carat during the period, compared with 32,353 carats selling for $1,703 per carat one year earlier. The average price of Letšeng sales in the third quarter was $2,022 per carat. Gem Diamonds noted that its final tender of 2013 achieved an average price of over $3,000 per carat, with firmer rough prices expected to continue into 2014.
During the fourth quarter, sales included a 12.47-carat blue diamond that sold for $7.5 million, or a record of $603,047 per carat for a Letšeng diamond. Additionally, 11 diamonds achieved over $1 million each, while 35 diamonds achieved a value in excess of $20,000 per carat.
Gem Diamonds explained that demand for rough diamonds remained healthy during the period, with increased demand from the U.S. during the December year-end Christmas season. Market focus has now shifted to Asia ahead of the Chinese New Year. The company believed that positive sentiment is expected to continue into the first quarter of 2014; however, sustained liquidity constraints are expected to result in the continuation of the cautious approach adopted by both rough and polished markets.
At the Ghagoo mine in Botswana, the company intersected kimberlite with the main decline at 50 meters from the breakoff to the first production level. The company also signed a $25 million facility for capital expenditure at the mine.
The company reported the death of one employee at the mine on January 11. Botswana's inspector of mines is conducting an inquiry into the incident, but has granted permission for mining operations to resume.
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Tags:
Blue diamond, Deena Taylor, diamond, diamonds, Gem Diamonds, Letšeng, Rough Diamonds
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