Thursday, June 30, 2022

Gem Diamonds inspired by rising diamond prices

Gem Diamonds, the owner of Gope deposits in the Central Kgalagadi Game Reserve said it is embolden by the rising jewellery sales in United States of America and Asian markets during the Christmas period as it positions to parade its full year results in March.

“The reports of strong diamond jewellery sales in the important US Christmas season, continuing growth in sales of diamond jewellery in Asia, specifically China and India and the fundamental supply demand imbalance, has meant strong rising prices for rough diamonds and, to a lesser extent polished diamonds,” Gem Diamonds’ Chief Executive Officer, Clifford Elphick, said in a trade update this week.

The diamond market held high throughout the week in major centres leading to reports of shortage of goods in certain categories. In New York, strong demand, especially in one carat and lower sizes, helped the market to push up the polished prices, while in Antwerp prices were strong both at polished and rough goods.

Mumbai reported strong demands, which were driven by both local and international traders with “prices keeping traders happy” though they expressed concern at the rising rough prices, according Indexonline.

In Ramat Gan, Isreal, traders were happy though they share same opinion with those in India that prices of rough are high. In Hong Kong the market strong bolstered by Chinese New Year that took place on Friday.

Gem Diamonds, which operates Letseng mine in Lesotho and Ellendale mine in Australia, said rough prices are surging up saying the Group has US 129 million cash at hand at the end of fourth quarter of 2010.

It said during the fourth quarter, Letseng started to implement its new sales and marketing strategy while at the same time its price per carat was up to a hopping US $ 3, 291 against the US $ 1,680 per carat during the third quarter.

During the last quarter of 2010, a total of 48 diamonds were sold in excess of US $ 20,000 per caratÔÇöincluding the 4.68 carat blue rough diamond that was sold for a record US $ 155, 000 per carat. Ellendale also recorded an average price of US $ 3, 482 per carat against US $ 2,792 per carat in the third quarter of the year.

Further, the company stated that details of its mining plan at Gope ÔÇô within the Central Kgalagadi Game Reserve ÔÇô will come out in the company’s annual report on March 15. The London Stock Exchange junior miner said that it expects the life-span of Gope to be in excess of 30 years.

Gem Diamonds acquired the Gope deposits from De Beers in May 2007 and started operation on one of the most challenging environment in the country. The proposed mine is within a game reserveÔÇöthe size of Denmark — and does not have access to power, reliable water supply and nor access to roads.

However, it is expected that the company will use its international experience that it gained from its other operations ÔÇô including operating in environmentally sensitive areas.

The Gope mine operation is expected to be unique in the sense that people will have to spend about two weeks in the mine camp and the rest with their families outside the reserve. The model is borrowed from two countries, Australia and Lesotho where it has been in operating for some years.

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