| CATEGORY: NEWS AND ANNOUNCEMENTS SECTOR: MINING |
Gem sees diamond prices weaken |
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Tue 14 Oct 2008
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LONDON (SHARECAST) - Gem Diamonds reported continued strong production at its various operations but is seeing the effects of weakening diamond prices.
In the quarter to September 30, the diamond miner continued to see a trend of record tonnage and carats at its Letseng mine in Lesotho and at Ellendale in Australia.
However, at the recent Letseng tender held in Antwerp prices for large, top quality rough diamonds softened by some 14% when compared to the October year-to-date moving average, Gem said.
Prices for Ellendale's commercial goods sold at auction in Dubai were over 20% weaker.
“At the moment the pricing environment remains uncertain,” Gem said.
However, the company added that lower fuel prices would help it reduce costs at Letseng and Ellendale.
The company has also been affected by the global credit crisis and expects this to delay the start of a project in Botswana.
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