Gem Diamonds September Tender $1,698 p/c

Gem Diamonds’ tender of 13,227 carats of Letseng diamonds closed at $22.5 million, an average of $1,698 per carat, according to RBC Capital Markets. This is a relatively lower average price for Letseng goods, which included three diamonds larger than 100 carats.

The tender, conducted by WWW in Antwerp, lowered the average price achieved so far this year to $1,718 p/c.

According to RBC, the lower average for some of the stones is probably a function of a heavier reliance on production from Letseng’s main pipe than the satellite pipe.

The September tender comprised of 2,176 carats in the “Large Goods” sale and 11,051 carat in the “Small Goods” sale. The large diamonds tender fetched $18.2 million, or $8,364 p/c, while the tender of smaller diamonds closed at $4.3 million, or ~$389 p/c.

This is the largest tender of Letseng goods since July when ~10,900 carats fetched an average of $2,010 p/c. In the large stone tender, the three +100 carat diamonds averaged $3,400- $5,000 p/c, reflecting the fairly poor quality of the stones, RBC said.

A 17 carat pink stone that sold for about $67,500 p/c and two stones of 55 carat and 22 carat that sold for about $45,000 p/c pulled the average higher. A few diamonds in the 25 carat range sold for $20,000-$35,000 p/c.

The recently recovered 196 carat white diamond was not part of the tender.

Gem Diamonds has indicated that it may change the way it sales the Letseng diamonds. Currently the goods are tendered; however, the company is considering alternative methods as well as polishing diamonds on its own or with a partner.