Prices achieved for Letšeng mine in Q3 third quarter remain robust

Gem Diamonds Limited announced its trading update with its operational and sales performance for Q3 2015 which ended 30 September 2015. The company’s Letšeng mine helped deliver a good performance for the period. Gem Diamonds holds a 70 percent shareholding in Letšeng Diamonds (Pty) Ltd in partnership with the Government of the Kingdom of Lesotho which owns the remaining 30 percent.

At the mine, 29,460 carats were recovered in the quarter. Gem Diamonds’ CEO, Clifford Elphick mentioned that, “It is pleasing to see that the prices achieved for Letšeng’s diamonds during the third quarter have remained robust despite the challenging market conditions experienced throughout this Period. The large high quality diamonds, for which Letšeng is renowned, have contributed to a strong Q3 2015 average price of US$ 2 578 per carat. Letšeng has also delivered a strong operational performance, with ore treated, grade and carat recoveries ahead of those of the previous quarter and expected to exceed original full year guidance.

Three diamonds from the mine of over 100 carats each were sold in the quarter, while 13 rough diamonds achieved a value of greater than US$ 1.0 million each , including an exceptional quality 357 carat Type IIa white diamond which achieved US$ 19.3 million on tender.

At the Ghaghoo mine, 31,923 carats of rough diamonds were produced in the quarter, with 115 diamonds greater than 4.8 carats each recovered including 13 diamonds larger than 10.8 carats in the said period. Also, two blue rough diamonds weighing 2.2 carats and 1.5 carats were recovered.

“Ghaghoo continues its ramp up, with ore treated and carats recovered up over 30% on the previous quarter. The Ghaghoo production faces a very challenging market at present,” as per Clifford Elphick.