Thursday, October 22, 2020

Two Letšeng mine carat diamonds fetch US$13.5 million

The London Stock Exchange (LSE) listed Gem Diamonds Limited has fetched US$13.5 million from the recent sale of the two diamonds over more than 160 carats, recovered from Lesotho’s Let┼íeng mine at the end of January 2014.

Gem Diamonds Investor Relations Sherryn Tedder says the two rare rough diamonds, with intrinsic values of 162.02 and 161.31 carats, respectively, both achieved top prices, in accordance with their respective colour, clarity and expected and polished yield, at Let┼íeng’s February tender. The 162.02 and 161.31 carat diamonds sold for US$11.1 million or US$68 687, and US$2.4 million or US$14 636 per carat, respectively.

Gem Diamonds is a leading producer of high value diamonds, owns 70% of the Letšeng mine in Lesotho as well as the Ghaghoo mine, currently in development in Botswana. Letšeng is famous for the production of large, top colour, exceptional white diamonds, making it the highest dollar per carat kimberlite diamond mine in the world.

Since Gem Diamonds’ acquisition of Let┼íeng in 2006, the mine has produced four of the top twenty largest white gem quality diamonds recorded.

Gem Diamonds has a growth strategy based on the expansion of the Letšeng mine and the development of the Ghaghoo mine, while maintaining its strong balance sheet.

The Company seeks to maximise revenue and margin from its rough diamond production by pursuing cutting, polishing and sales and marketing initiatives further along the diamond value chain.

With favourable supply/demand dynamics expected to benefit the diamond industry over the medium to long term, particularly at the high end of the market, this strategy positions the Company well to generate attractive returns for shareholders in the coming years.

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