DiamondCorp tender exceeds reserve prices

JOHANNESBURG (miningweekly.com) – Dual-listed DiamondCorp has sold 5 116 ct of diamonds recovered at the Lace mine prior to the Lace Diamond Mines (LDM) subsidiary being placed in business rescue in November.

The miner sent 5 129.9 ct to Johannesburg for tender, but the number of carats offered for sale was lower after boiling losses.

The parcel comprised run-of-mine production with five stones larger than 10 ct, the largest stone being a 19.43 ct nongem diamond. Unfortunately, all the larger goods were either nongem, or contained carbon inclusions or cracks which resulted in reduced valuations.

Nonetheless, all reserve prices were exceeded and the diamonds were sold for $590 744.86, or $115.46/ct.

In the size fractions up to 5 ct in size, prices achieved were comparable or better than achieved throughout the year. In the smallest size fractions prices were weaker.

All sales proceeds have now been received and, as a result of this sale, the average carat value achieved for the year has fallen to $146/ct, 11% lower than the $164/ct forecast average.

“While a proportion of this fall is the result of the weaker market in the lowest size fractions, it is largely the absence of high-quality gems among the larger stones in the last two sales. One large gem could just as easily swing the average the other direction,” the company said in a statement.

The miner announced on November 14 that production at its Lace mine had been halted after a flood at the mine, which required it to put LDM in business rescue.