Diamondcorp Plc Update on Diamond Sales from the Lace Diamond Mine (3440K)
September 20 2016 - 7:45AM
UK Regulatory
TIDMDCP
RNS Number : 3440K
Diamondcorp Plc
20 September 2016
20 September 2016
DiamondCorp plc
AIM share code: DCP & JSE share code: DMC
ISIN: GB00B183ZC46
(Incorporated in England and Wales)
(Registration number 05400982)
(SA company registration number 2007/031444/10)
("DiamondCorp", "the Group" or "the Company")
Lace DIAMOND mine
September quarter diamond sales
DiamondCorp, the Southern African diamond mining, development
and exploration company, is pleased to provide the following update
on diamond sales from the Lace diamond mine in the Free State
province of South Africa.
-- A total of 7,121 carats (cts) of diamonds have been sold in
the current three month period through a combination of direct
sales and competitive tender for total revenue of $782,455.
-- The 7,127 cts comprised 4,863 cts of diamonds recovered from
kimberlite mining and 2,258 carats of diamonds from tailings
production and fine diamonds less than 1.25 mm.
-- A total of 5,716 cts were sold by a competitive tender in
Antwerp which was extended through until yesterday afternoon to
accommodate a 55% increase in the number of companies which wanted
to view the Lace goods compared with the last tender in April.
-- The Company experienced good demand for its production in all
size categories and all lots offered for sale were sold. Prices
achieved in each size fraction offered for sale were in line with
prices achieved in April, with the exception of cheaper goods where
some weakness was experienced.
-- A further 1,406 cts of kimberlite diamonds were also sold
this week by direct sales in Johannesburg and an 8.7 ct stone was
sold earlier in the period for $5,700/ct.
-- The most recent sales only contained one special stone of
12.47 cts which sold for $5,132/ct. The balance comprised excellent
quality diamonds in all the smaller size fractions, but few
diamonds larger than 5 cts compared with the July direct sales
which contained a higher than average proportion of +8 ct
stones.
-- Kimberlite diamonds sales in the period totalled $686,306,
for an average sales price of $141/ct, bringing the average sales
price achieved for the year to date to $169/ct, slightly ahead of
the Company's $164/ct base case.
-- The fluctuation in stone size frequency distribution (SFD) of
+5 ct stones over the various sales this year is considered a
result of the small sample size in each sale, and the current sales
when considered in aggregate with all sales this year results in a
log normal distribution of size and value in line with the SFD base
case.
-- Importantly the $169/ct average has been achieved on the
equivalent of less than one month's production of diamonds
recovered from kimberlite ore as Lace ramp-ups to full output from
the UK4 mining block and includes no large (+30 ct) or exceptional
value stones in the year to date.
-- Given the mine's historical record of producing diamonds up
to 122 ct, this underlines how one or two large or exceptional
value stones have the potential to push the average $/ct above the
$164/ct base case.
-- The 2,258 cts from tailings production and fine diamonds sold
for a total of $96,149 representing $43/ct.
Contact details:
DiamondCorp plc
Paul Loudon, Chief Executive
Tel: +27 56 216 1300
Euan Worthington, Chairman
Tel: +44 7753 862 097
UK Broker & Nomad
Panmure Gordon (UK) Limited
Adam James/Atholl Tweedie
Tel: +44 20 7886 2500
JSE Designated Advisor
Sasfin Capital (a division of Sasfin Bank Limited)
Megan Young
Tel: +27 11 445 8068
SA Corporate Advisor
Qinisele Resources Proprietary Limited
Dennis Tucker/Andrew Brady
Tel: +27 11 883 6358
This information is provided by RNS
The company news service from the London Stock Exchange
END
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