MENU
 
 Registered users can save articles to their personal articles list. Login here or sign up here

Diamond miner finds two more big stones as shortage eases

Both of the latest discoveries are larger than 100 carats.

Gem Diamonds discovered two diamonds bigger than 100 carats at its Lesotho mine in southern Africa, bringing the struggling miner a step closer to ending a drought of large stones.

Gem unearthed a 104.73 carat D color Type IIa diamond and a 151.52 carat Type I yellow diamond at its Letseng mine, the company said in a statement Monday. Type IIa diamonds contain very little or no nitrogen atoms and are the most expensive stones.

Until now Gem had reported just one large discovery this year, after unearthing a 114-carat diamond in April. Letseng is renowned for the size and quality of its stones, with an average sales price of almost $2 000 a carat, the highest in the industry. Yet the company has suffered recently from a lack of big finds and discovered just five stones bigger than 100 carats last year, fewer than half as many as it found in 2015. 

Gem gained 2.2% to 93.5 pence a share at 10:17am on Monday, paring this year’s decline to 15%.

 

 

Gem, which fell to a record low in April, has also been hurt by weakening prices for lower-quality stones produced at its Ghaghoo mine in Botswana. In February, the company said it was shutting the newly built operation because prices had fallen by one-third since 2015.

While the latest finds will offer some reassurance to investors, they’re not even close to the biggest found at Letseng. In 2015, Gem sold a 357-carat stone for $19.3 million and in 2006 found the 603-carat Lesotho Promise.

Last week, 27% of shareholders voted against the re-election of chief executive officer Clifford Elphick.

© 2017 Bloomberg

COMMENTS   0

To comment, you must be registered and logged in.

LOGIN HERE

Don't have an account?
Sign up for FREE

LATEST CURRENCIES  

ZAR / USD
ZAR / GBP
ZAR / Euro

MARKET INDICATORS

JSE ALSI
DAX
CAC40
NasDaq
Gold / oz
Silver
Platinum / oz
Brent
Rand/Dollar
Rand/Pound
Rand/Euro
Dollar/Euro

Podcasts

GO TO SHOP CART

Follow us:

Search Articles:Advanced Search
Click a Company:
server: 172.17.0.2