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Letśeng Average Prices Slide

Jul 19, 2016 10:21 AM   By Rapaport News
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RAPAPORT... Gem Diamonds reported average prices at its Letśeng mine in Lesotho dropped 16 percent in the first half due to a shift in mining to lower-value but higher-grade areas.

The price fell to $1,899 per carat from $2,264 a carat a year earlier, with the shift in mining resulting in fewer large diamonds -- above 100 carats -- being recovered. Despite lower prices and volume of sales surging 19 percent to 55,959 carats, revenue was flat at $106.3 million.

The company expects a “modest recovery” in rough prices in the second half after it saw some improvement in its index on a like for like basis in the second quarter. However, liquidity constraints, higher inventory of polished and an uncertain macroeconomic outlook continue to characterize the polished market, the group said.

Gem Diamonds announced in February it is slowing development of its Ghaghoo mine in Botswana due to weaker market conditions. Production, which was launched at the beginning of 2015, plunged 63 percent to 20,876 carats in the first half.
Tags: diamonds, Gem Diamonds, Ghaghoo, Letseng, Rapaport News
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