First Kao Diamonds Sale Exceeds Expectations

(IDEX Online News) – Namakwa Diamonds Limited today (Wednesday) announced that the first sale of diamonds from the Kao mine realized prices 17 percent above expectations. The tender totalled $6.47 million.

Some 16,388 carats were sold at the Antwerp sale. The tender was conducted Fusion Alternatives, the tender partner of I Hennig & Co. The average per carat (p/c) price was $395 p/c, with an average diamond size of 0.36 carats. 

The largest diamond sold in the sale was 38 carats, which realized a price of $6,668 p/c. Other notable sellers were an 11 carat stone, which achieved a price of $15,020 p/c and four diamonds with sizes varying between 6 and 14 carats, which sold for an average of $7,100 p/c. 

“We are delighted with the outcome of our first tender sale in Antwerp of Storm Mountain Diamonds’ production from the Kao Mine,” said Richard Collocott, chief executive officer of Namakwa Diamonds.

“Achieved prices were 17 percent higher than anticipated resulting in an additional $1m in sales income,” he added. “The significant improvement in achieved price reflects both the increased parcel size on comparative diamond sales in

Johannesburg, as production ramps-up at the Kao Mine, and the international exposure provided by our tender partner, Fusion Alternatives.  We look forward to regular monthly sales in Antwerp for the foreseeable future.”

Sales will continue through Fusion Alternatives for at least the next six months.

Since January 2012, the group has sold 49,771 carats from the Kao Mine, realizing $13.76 million in revenue.

The Kao Mine in Lesotho is operated by Storm Mountain Diamonds. Namakwa holds a 62.5 percent interest in the mine. The other shareholders are the government of Lesotho (25 percent) and Kimberlite Investments Lesotho Limited (12.5 percent).