20th Sep 2016 12:03
LONDON (Alliance News) - DiamondCorp PLC on Tuesday said demand for its latest tender of diamonds was significantly higher than the last but said the effect on pricing was limited, adding that the amount of exceptional stones has a big impact on prices.
The miner said it has so far sold 7,121 carats in the quarter that will run until the end of September, generating total revenue of USD782,455 - implying an average selling price of almost USD110 per carat.
The total carats sold comprised of 4,863 carats from kimberlite mining and 2,258 carats either being taken from tailings production or classed as fine diamonds.
DiamondCorp sold 5,716 carats via a tender offer in Antwerp, and the company said it had to be extended to accommodate a 55% increase in the number of companies which wanted to view the Lace goods compared with the last tender in April.
"The company experienced good demand for its production in all size categories and all lots offered for sale were sold. Prices achieved in each size fraction offered for sale were in line with prices achieved in April, with the exception of cheaper goods where some weakness was experienced," it said.
A further 1,406 carats were sold "this week" in Johannesburg, with only one special stone of 12.47 carats being sold at a price of USD5,132 per carat - implying a value of USD63,996. An 8.7 carat stone was sold earlier in the quarter for USD5,700 per carat - implying the value of the stone was around USD49,590.
Overall, kimberlite diamond sales in the current quarter ave generated revenue of USD686,36 at an average selling price of USD141 per carat, bringing the average selling price for the year-to-date to USD169 per carat, slightly ahead of the miner's base case price of USD164.
Given the mine's historical record of producing diamonds up to 122 carats, the miner said this underlines how one or two large or exceptional value stones have the potential to push the average price above the base case.
The other 2,258 carats taken from tailings and fine diamonds generated total revenue of USD96,149, equal to an average price of USD43 per carat.
DiamondCorp shares were up 5.6% to 5.68 pence per share on Tuesday.
By Joshua Warner; [email protected]; @JoshAlliance
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