Firestone Diamonds sees return of stability to market

5th Dec 2011 12:20

Exploration and mining firm Firestone Diamonds has reported a return of stability to the rough diamond market after it was able to sell all diamonds offered at its most recent sale. During the sale, its fourth of 2011, the firm sold 47,576 carats for a total of $2.8m. Chief executive officer Tim Wilkes said: "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, and expect to see prices for both Liqhobong and BK11 production increase in 2012."The number of buyers attending the sale and showing interest in the tender was significantly higher than in September and back to the levels seen at the July tender, the firm added. Results from the sale indicate that the value of run of mine production from Liqhobong and BK11 have dropped by about 30% from their highs in July 2011, in line with the company's expectations. The run of mine value of production was consequently $95/carat from Liqhobong and $180/carat from BK11. The share price 4.6% to 11.38p by 12:37.NR