14th Jun 2016 08:32
LONDON (Alliance News) - South African diamond mining, development and exploration company DiamondCorp PLC Tuesday said it has sold two parcels of diamonds for USD436,597.
DiamondCorp said the two parcels would have formed part of its larger diamond tender in Antwerp, scheduled for the end of this month, but were sold to South African diamantaires when its reserve prices were exceeded during the South African export process.
The two parcels comprised 1,838 carats of run-of-mine kimberlite diamonds and 1,679 carats of tailings diamonds, and were sold for an average USD189 per carat and USD53 per carat respectively.
"The company undertakes regular diamond exports from South Africa in order that its diamonds are sorted and prepared for tender sale in Antwerp. Every tender comprises several export shipments, the process of which each time involves a four-day window when South African licenced diamantaires may bid for the production," said Chief Executive Officer Paul Loudon in a statement.
"If the reserve prices placed by DiamondCorp on the parcels are exceeded during this four-day period, then the company is obliged to sell the diamonds to the highest bids rather than exported. The company's reserve prices must be market-related," Loudon added.
DiamondCorp said it will now monitor the rate of rough diamond accumulation from the first month of full production from the UK4 Block during July, and determine the best date to re-schedule its next Antwerp tender to maintain regular cashflow until steady state monthly tender sales are achieved.
It remains on track to produce more than 75,000 carats of diamonds from kimberlite in 2016, DiamondCorp said.
DiamondCorp noted that, in addition to unexpected capital expenditure on its mining fleet it has previous reported, it has continued to incur high breakdown and repair costs on its existing fleet whilst newly acquired machines are being refurbished. As a result, its operational cashflow remains tight, and the early cash received from the sales will help in this regard.
Shares in DiamondCorp were down 3.9% at 7.09 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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