Saturday, June 29, 2013

Gem Diamonds Limited pulling big diamonds

Gem Diamonds Ltd said it recovered a 100 carat diamond from its Letseng mine in Lesotho, sending its shares up as much as 8 percent. The discovery of the rough diamond on June 22 is the third diamond of over 100 carats in size to be recovered from Letseng since May. A 164 carat diamond from Lesotho sold for $9 million last month.
"The recovery of three diamonds each with a likely price-tag in the $6 million to $10 million range should be viewed against total 2012 revenue of $202 million," Citigroup analyst Jon Bergtheil said. "The three diamonds alone could come to represent more than 13 percent of 2012 turnover."

Letseng's June export achieved an average price of $2,087 per carat, for a total value of $22 million, compared with an average price of $1,599 per carat for the first three tenders in the year, Gem Diamonds said in a statement."

More on Gem Diamonds Limited (GEMD.l) here ...