Gem Diamonds Limited has reported a positive operational and sales performance during the quarter ended September 30, 2015, with the company achieving an average price of US$ 2,578 per carat for diamonds from its Letseng mine in Lesotho and achieving higher processing and recovery figures at reduced costs as well. Based on this strong operational performance and cost discipline, the production and cost guidance for 2015 at Letseng has been revised upwards.

The company said that it sold 13 rough diamonds at 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, and two more diamonds of over 100 carats.

It noted that prices for the large, high value rough production from Letšeng remained robust during the quarter, despite continued liquidity constraints, high inventory levels and the slowdown of the Chinese economy.

Gem Diamonds also reported good progress at its Ghagoo mine in Botswana. The average recovered grade of 29.1 cpht remains higher than the average reserve grade of 27.8 cpht. Five development tunnels are now being mined, with a further four tunnels being developed.

The company reported that at Ghagoo, 115 diamonds greater than 4.8 carats each were recovered during the quarter, including 13 diamonds larger than 10.8 carats. A total of 31,923 carats were recovered during the quarter, including two blue rough diamonds weighing 2.2 carats and 1.5 carats.

The second parcel from Ghagoo was sold in July achieving an average price of US$ 165 per carat, bringing the total average US$ per carat achieved for the year to date to US$ 176 per carat.

Gem Diamonds’ CEO, Clifford Elphick commented, “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.”

He added, “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, while 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.”

Pic Caption: The 357 carat diamond from Letseng mine that was sold for US$ 19.3 mn in Q3