Diamond sales from Lace Diamond values $590,744.86

DiamondCorp’s operating subsidiary, Lace Diamond Mines (Pty) Ltd completed the sale of diamonds recovered from the Lace mine prior to LDM being placed in business rescue. A total of 5,129.9 carats were delivered to Johannesburg for tender and 5,116.6 carats were prepared for sale after boiling losses.

The diamond offered on sale included run of mine production with five stones larger than 10 carats and the largest stone being a 19.43 carat non-gem diamond. All the larger goods were either non-gem, or contained carbon inclusions or cracks which resulted in reduced valuations.

The company noted that all reserve prices were exceeded and the diamonds were sold for $590,744.86, representing $115.46 per carat. Prices achieved in the size fractions (+7 sieve size) up to 5 carats in size, were comparable or better than achieved throughout the year. In the smallest size fractions (-7 sieve size) prices were weaker. All sales proceeds have now been received.

The average carat value achieved for the year has fallen to $146/ct, 11% lower than the $164/ct forecast average. While a proportion of this fall is the result of the weaker market in the lowest size fractions, it is largely the absence of high quality gems amongst the larger stones in the last two sales. One large gem could just as easily swing the average the other direction, the company noted.