Staff Reporters
GEM Diamonds Limited, the company which partly owns Letseng mine, achieved US$2000 (about M35,533) per carat in the third quarter of 2022 in its sales, the company has said.
In its trade update for the third quarter of 2022, the company said it generated US$56, 6 million during the period under review achieving an average price US$2028 per carat, an increase from the US1589 per carat achieved in the corresponding period last year.
Gem Diamonds owns 70 percent of the Letseng Mine while the remainder is owned by the government.
“Twenty-five thousand and eighteen carats were recovered during the period, resulting in 80 174 carats recovered for the year to date (YTD 2021: 82 266 carats),” the company said recently.
“Eighty-four thousand, nine hundred and eighty-nine carats have been sold for the year to date, achieving an average price of US$1838 (about M32 633) per carat (YTD 2021: US$1782 (about M32 076) per carat).
“The highest price achieved in the period was US$79 543 (M1, 4 million) per carat for a 10, 07 carat pink diamond.”
Ten diamonds were sold for more than US$1 million (about M17, 8 million) each, generating revenue of US$25, 1 (about M446, 2 million) during the period.
The company said four diamonds greater than 100 carats were sold during the same period generating revenue of US$15, 6 million (about M277, 5 million). Three of these diamonds were recovered in the second quarter.
“The group ended the period with US$17, 4 million cash on hand (excluding US$15, 2 million (about M270, 3) of September tender proceeds that were received after period end). Drawn down facilities amounted to US$12 million resulting in a net cash position of US$5, 4 million (about M96, 1 million) at period end (excluding US$15, 2 million of September tender proceeds that were received after period end) (H1 2022: US$12.1 million).
“The group had undrawn and available facilities of US$65, 3 million (about M1, 163 billion) at period end.
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“The 5, 5-year term loan facility for the construction of the mining complex at Letšeng, was fully repaid at the end of the period,” the company said.
Gem Diamonds CEO, Clifford Elphick, said the performance was pleasing.
“It is pleasing to see that the average price achieved for the Letšeng tenders for Q3 2022 exceeded US$2000 (about M35 625) per carat, notwithstanding the current downturn in the global economy.
“Post period end, production at Letšeng was impacted by the Lesotho general election on 7 October and the compulsory two-day shutdown of operations legislated by the government of the Kingdom of Lesotho to allow voting in employee home wards. In addition, a crusher breakdown was experienced in Plant 2, which has since been repaired and the plant is running at normal capacity,” Mr Elphick said.
