Bangalore: Miner Gem Diamonds Ltd said it recovered a 100 carat diamond from its Letseng mine in Lesotho, sending its shares up as much as eight percent. The discovery of the rough diamond on June 22 is the third diamond of over 100 carats in size to be recovered from Letseng since May. A 164 carat diamond from Lesotho sold for $9m last month.
“The recovery of three diamonds each with a likely price-tag in the $6m to $10m range should be viewed against total 2012 revenue of $202m,” Citigroup analyst Jon Bergtheil said. “The three diamonds alone could come to represent more than 13 percent of 2012 turnover.”
Letseng’s June export achieved an average price of $2,087 per carat, for a total value of $22m, compared with an average price of $1,599 per carat for the first three tenders in the year, Gem Diamonds said in a statement. “Mining will steadily increase in the higher value and higher grade satellite pipe in the second half of this year, and it is anticipated that revenues will therefore show a resulting increase,” Chief Executive Clifford Elphick said.
Reuters
