Gem Diamonds provides details on diamond price increases

25th Jul 2011 12:42

Global diamond producer Gem Diamonds has today provided a trading update on its results for the half year to 30th of June 2011, ahead of its regular results release scheduled for the next 19th of august 2011. Particularly worth pointing out, the company has indicated that the expansion of its Letseng mine in Lesotho is nearing completion. Gem Diamonds will provide a detailed presentation on the planned expansion in early September. As well, the company has informed the market of the approval of first stage development of the Ghaghoo Mine in Botswana (formerly known as Gope).More specifically, and as regards semester highlights at its Letseng mine, the mining outfit says that it achieved a record average value of US$3,052 per carat, for the first half of 2011. Also, agreement has been reached for a 24.73% price increase, as at 1 April 2011, for Ellendale's (Australia) fancy yellow diamonds, which are sold to Tiffany & Co..Beyond the trend seen towards increasing consumption of diamond jewellery in China, India and the US the company´s chief executive officer, Clifford Elphick, cites the, "lack of significant new mines coming on stream and very low stocks of rough and polished diamonds in the cutting centres," as the main reasons behind the rise seen in prices. As of 13:03PM shares of Gem Diamond are rising by 2.1% to 242.4 in London trading. AB