Diamond Sale Results (2893T)
December 05 2011 - 2:00AM
UK Regulatory
TIDMFDI
RNS Number : 2893T
Firestone Diamonds PLC
05 December 2011
Firestone Diamonds plc
Diamond sale results
LONDON: 5 December 2011
Firestone Diamonds plc, ("Firestone" or "the Company"), the
AIM-quoted diamond mining and exploration company (ticker:
AIM:FDI), announces results from its fourth diamond sale of
2011.
HIGHLIGHTS
Results of tender
-- 47,576 carats sold for gross proceeds of $2.8 million
-- All diamonds offered at the tender were sold
-- Run of mine value of production from Liqhobong and
BK11 estimated to be $95/carat and $180/carat, respectively
Rough diamond market
-- Prices have fallen approximately 30% from their highs
in July 2011
-- Some stability has returned to the market, with growing
demand from China and India and shortfall in supply
expected to support prices
-- Prices for Liqhobong and BK11 production expected
to increase in 2012
Tim Wilkes, CEO of Firestone Diamonds, commented "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."
A total of 47,576 carats was sold for gross proceeds of $2.8
million. The diamonds sold were comprised of approximately 27,000
carats of new production from the Liqhobong Mine and the BK11 Mine,
and approximately 20,000 carats, principally comprising smaller
diamonds from both mines, that had been withdrawn from the previous
diamond tender in September 2011. The number of buyers attending
and interest in the tender was significantly higher than in
September and back to the levels seen at the July tender.
All of the diamonds offered at the tender were sold, and results
indicate that the value of run of mine production from Liqhobong
and BK11 have dropped by about 30% from their highs in July 2011.
This is in line with the Company's expectation, as indicated in the
preliminary announcement of results for the year ended 30 June 2011
that was released on 14 November 2011 (the "Preliminary
Announcement"). On this basis, the value of run of mine production
from Liqhobong and BK11 are estimated to be $95/carat and $180
/carat.
As indicated in the Preliminary Announcement, the Company
intends to announce a summary of results of both production and
diamond sales on a quarterly basis. The next update, which will be
for Q4 2011, will be provided in Q1 2012.
For further information, visit the Company's web site at
www.firestonediamonds.com or contact:
+44 20 8741 7810/+44 7831
Philip Kenny, Chairman, Firestone 324 645
Diamonds +27 78 457 6623/+267 713
Tim Wilkes, CEO, Firestone Diamonds 77686
Rory Scott, Mirabaud Securities
(Nominated Broker) +44 20 7878 3360
Robert Beenstock, Brewin Dolphin
(Nominated Adviser) +44 20 7246 1000
Jos Simson / Emily Fenton, Tavistock +44 20 7920 3150/+44 7899
Communications 870 450
Background information on Firestone Diamonds:
Firestone Diamonds plc is an international diamond mining and
exploration company with operations focused on Lesotho and
Botswana. Firestone operates the Liqhobong Mine in Lesotho and the
BK11 Mine in Botswana. Firestone is also the largest holder of
mineral rights in Botswana's diamondiferous kimberlite fields,
controlling approximately 10,000 square kilometres around the major
Orapa and Jwaneng mines and the entire Tsabong kimberlite field. In
addition to Liqhobong and BK11, Firestone has 108 kimberlites in
its portfolio, of which 30 have been proven to be
diamondiferous.
Lesotho is emerging as one of Africa's significant new diamond
producers, and hosts Gem Diamonds' Letseng Mine, Firestone's
Liqhobong Mine as well as the Kao and Mothae development projects.
Botswana is the world's largest and lowest cost producer of
diamonds, with annual production worth over $2.5 billion, and is
considered to be one of the most prospective countries in the world
to explore for diamonds.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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