Firestone Diamonds Tender Raises $2.8 Million

(IDEX Online News) – Firestone Diamonds plc, the AIM-quoted diamond mining and exploration company, today announced that its fourth diamond sale of 2011 raised $2.8 million. All of the 47,576 carats of goods offered at the tender were sold.

Firestone said that the prices realized had fallen some 30 percent from their height in July; a result in line with the company’s expectations. Interest in the tenders, however, was significantly higher than at the previous tender in September.

The diamonds sold comprised approximately 27,000 carats of new production from the Liqhobong Mine and the BK11 Mine, and approximately 20,000 carats, principally comprising smaller diamonds from both mines that had been withdrawn from the previous diamond tender in September 2011.

The run of mine value of production from Liqhobong and BK11 is estimated at $95 per carat (p/c) and $180 p/c, respectively. The company said prices for goods from these two mines are expected to increase in 2012.

"We are pleased to have been able to sell all of the diamond production offered at our recent tender, the results of which indicate that some stability has returned to the rough diamond market after the volatility of the past few months. We remain positive about the fundamentals of the diamond market, with long-term demand, which is largely driven by growth in India and China, expected to continue to outstrip supply," said CEO Tim Wilkes.