DiamondCorp Draws Heavy Interest at Antwerp Sale of Lace Mine Diamonds

Rough Market
20/09/2016 16:08

DiamondCorp, the Southern African diamond mining, development and exploration company, has announced that it has sold a total of 7,121 carats (cts) of diamonds from the Lace diamond mine in the Free State province of South Africa in the current three month period through a combination of direct sales and competitive tender, earning total revenues of $782,455. The company sold 4,863 cts of diamonds recovered from kimberlite mining and 2,258 carats of diamonds from tailings production and fine diamonds less than 1.25 mm. The sale in Antwerp of 5,716 cts by a competitive tender drew particularly strong interest, and had to be extended an extra day to accommodate a 55% increase in the number of companies that wanted to view the Lace goods, compared with the last tender in April.

As a result, DiamondCorp reported good demand for its production in all size categories; 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. A further 1,406 cts of kimberlite diamonds were also sold this week by direct sales in Johannesburg and an 8.7 ct stone was sold earlier in the period for $5,700/ct. The most recent sales only contained one special stone of 12.47 cts, which sold for $5,132/ct. The balance comprised excellent quality diamonds in all the smaller size fractions, but few diamonds larger than 5 cts compared with the July direct sales, which contained a higher than average proportion of +8 ct stones. Kimberlite diamond sales in the period totalled $686,306, for an average sales price of $141/ct, bringing the average sales price achieved for the year to date to $169/ct, slightly ahead of the Company's $164/ct base case.