Sale of the 198 carat Letseng diamondBack
01 Oct 2014
Gem Diamonds Limited (LSE: GEMD) is pleased to announce the sale of the 198 carat Type II, D colour diamond (the recovery of which was announced on the 5th August 2014) for US$ 10.6 million (US$ 53 746 per carat) at LetĹˇengâ€™s recent September tender.
Gem Diamonds CEO, Clifford Elphick stated:
â€śThe sale of this large, high quality white diamond demonstrates the continued robust demand for large high quality diamonds.â€ť
For further information:
Gem Diamonds Limited
Sherryn Tedder, Investor Relations
Tel: +44 (0) 203 043 0280
Mob: +44 (0) 7778 246 321
Pelham Bell Pottinger
Charles Vivian / James MacFarlane
Tel: +44 (0) 207 337 1500861 3232
About Gem Diamonds:
Gem Diamonds is a leading producer of high value diamonds. The Company owns 70% of the LetĹˇeng mine in Lesotho (30% held by the Government of Lesotho); as well as the Ghaghoo mine in Botswana. The LetĹˇeng mine is famous for the production of large, top colour, exceptional white diamonds, making it the highest dollar per carat kimberlite diamond mine in the world. Since Gem Diamondsâ€™ acquisition of LetĹˇeng in 2006, the mine has produced four of the top twenty largest white gem quality diamonds recorded.
Gem Diamonds has a growth strategy based on the expansion of the LetĹˇeng mine and the development of the Ghaghoo mine, while maintaining its strong balance sheet. The Company seeks to maximise revenue and margin from its rough diamond production by pursuing cutting, polishing and sales and marketing initiatives further along the diamond value chain. With favourable supply/demand dynamics expected to benefit the diamond industry over the medium to long term, particularly at the high end of the market, this strategy positions the Company well to generate attractive returns for shareholders in the coming years.