/ 26 June 2013

Gem Diamonds rises after unearthing 100-carat stone in Lesotho

Letseng mine in Lesotho
Letseng mine in Lesotho

Gem Diamonds rose the most in more than nine months in London trading after discovering a 100- carat white diamond at its Letseng mine in Lesotho.

Gem rose as much as 7.7%, the steepest intraday gain since September 6, and traded at 121.5 pence at 8:13 am on Wednesday. The diamond is the third stone larger than 100 carats found at Letseng since May, Gem said in a statement today.

 

“Following recent sales, we believe that this stone could fetch offers greater than $5-million,” Numis Securities said in a note to investors.

 

Letseng, once operated by De Beers, was bought by Gem in 2006 for $118.5-million. The mine has produced some of the world’s biggest diamonds including the 603-carat Lesotho Promise, the largest diamond unearthed this century, and a 550- carat stone that was discovered in 2011.

 

Gem said that its average selling price was $2 087 a carat in June compared with $1 599 a carat in its first three tenders of 2013. – Bloomberg