Large Diamonds Prevent Any Serious Losses At Letseng

Gem Diamonds sold 4% fewer diamonds from the Letseng mine in Lesotho on the year at 47,065 carats in the first half of 2013. Sales amounted to $81.9 million in the period – down from $82.6 million a year before. The average price per carat was $1,741 for the first five tenders of 2013 from $1,690 a year before.

The diamond company said that nine rough diamonds achieved a value of more than $1 million each, and 44 rough diamonds achieved prices greater than $20,000 per carat. A total of 252 rough diamonds greater than 10.8 carats in size were recovered, equating to 67% of Letseng’s revenue for the period.

Following the half-year period, a tender in July achieved an average price per carat of $2,202. Three diamonds over 100 carats in size were recovered during the period: a 164-carat white diamond which was sold for $9 million into a partnership arrangement, a 103-carat yellow diamond which was sold for $810,000, and a 100-carat white diamond which was sold for $6.45 million in July.

"We are now focused on moving mining operations to the higher value, higher grade satellite pipe, which should positively impact revenues during H2 2013," said Gem CEO Clifford Elphick. "The secondary and tertiary cone crushers have now been installed and are expected to reduce diamond breakage.”

Gem Diamonds owns 70% of Letseng Diamonds in partnership with the government of the Kingdom of Lesotho which owns the remaining 30%.

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