Firestone Diamonds plc today announced that it has recovered a 134 carat gem-quality light yellow diamond from its Liqhobong Diamond Mine, located in Lesotho. This is the largest diamond recovered at the mine to date and the second of over a hundred carats since production commenced. The Company said that this reinforces the potential for large stones at Liqhobong even as it continues with early stage mining at the project site.

Last week, Firestone also announced that its latest diamond sales, held in July and September 2017 in Antwerp had generated proceeds of US$13.5 million at an average value of US$69 per carat. It said that all the stones presented at the sale, totalling 195,330 carats had been sold including another >US$1 million stone.

Firestone said that this average realised value per carat represents the continued lower than expected occurrence of larger, better quality diamonds as well as a market that remained subdued. It added that the market was affected by oversupply, continued impact of India’s de-monetisation programme on lower quality Run of Mine goods, and the summer months being traditionally slow.

The Company also stated that the lower frequency of higher value diamonds to date is potentially a function mining in the lower grade areas within the open pit, and expects the average value per carat to rise as mining operations progress into all areas of the open pit. It added that lower value per carat is not an uncommon situation in the early production stages of a new mine.

Whilst, over the medium term, both market conditions and diamond values are expected to improve, the Board said it is working on developing a revised mine plan in the context of the short-term pricing pressures currently being experienced. It added that this would require additional financing and restructuring of existing debt obligations and said it has been in productive discussions with both its major shareholders and its debt provider ABSA Bank Limited, with a view to reaching a solution.