Gem Diamonds’ Letseng's Rough Doubles Average Price in Q4

(IDEX Online News) - The continued increase in rough prices, and three +100 carat white diamonds, helped propel the average value of Letšeng's rough diamond production to a record quarterly price of $3,291 p/c. Gem Diamonds, part owner and operator of the mine, also reported a record average for yellow diamonds from its Ellendale mine.

Letšeng Diamonds in Lesotho produced 22,066 carats in the fourth quarter, rising 11 percent year-over-year, Gem Diamonds reported trading update. For the full year, the mine produced 90,933 carats.

While the volume of sales of goods from the mine declined 7 percent to 24,517 carats, total sales fetched $80.7 million, rising 62 percent from the fourth quarter of 2009. This translates to an average value of $3,291 p/c, compared to $1,894 p/c the year before.

Letšeng’s sales of 88,564 carats in 2010 totaled $190.3 million, averaging $2,149 p/c.

During the fourth quarter, three white diamonds of 196 carats, 184 carats and 116 carats were sold for a total value of $28.5 million at a combined average price of $57,427 p/c. Additionally, a 4.68 carat blue rough diamond sold for a Letšeng record of $155,000 p/c, for a total of $725,400.

At the company’s Ellendale Mine in Australia, production during the quarter declined 27 percent to 39,535 carats and sales of 65,299 carats were a 19 percent decline. Total sales leaped 37 percent to $30.3 million, averaging $464 p/c.

During the quarter, 5,444 carats of rare fancy yellow diamonds were sold to Tiffany & Co subsidiary Laurelton Diamonds Inc. The agreed 25 percent price increase that became effective on October 1, 2010 resulted in an average price achieved of $3,482 p/c. The next pricing review takes place in March 2011.

In 2010, 166,708 carats were recovered at Ellendale, and 163,934 carats were sold for $77.9 million.