Gem Diamonds said production at its 70 percent-owned Letšeng mine, in Lesotho leaped 35 percent to 112,367 carats during the financial year (FY) 2011 from 90,933 carats recorded the previous year.
It said in a statement that 107 700 carats were also exported for sale during the period under consideration, representing a 32 percent increase from 2010’s 88,564 carats.
Gem said diamond prices fell sharply across the industry at the end of the third quarter 2011 due to the Eurozone’s crisis and tightened liquidity.
However, Letšeng saw diamond prices for it’s less than 10.8 carat diamonds recover by 4 percent across the board, with the better quality, less than 10.8 carat diamonds recovering by 8 percent on average in the fourth quarter.
“More positively for Letšeng, the exceptional, larger diamonds were not as severely impacted as
the smaller diamonds were in the third quarter, but also showed single digit improvements in price in the fourth quarter,” it said.
Meanwhile, Gem said that Phase 1 development of its Ghaghoo diamond mine, in Botswana was progressing “well”, with the box cut and portal having been completed in FY 2011.
It also noted that the mine was on schedule to deliver first production in mid 2013.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished

Rough&Polished