Gem Diamonds said that in the fourth quarter 2016 production of diamonds on her mine Letseng (Letšeng) in Lesotho was 26,438 carats, an increase of 8% from 24 388 carats in the third quarter. For the entire 2016 108 206 carats of diamonds were mined.
The company, however, said that during the reporting period is less than the large diamonds of special sizes have been found to Letseng than expected, resulting in an average price of stones fell to $ 1,444 per carat, and for the full year - up to $ 1695.7 per carat. The company's revenues from Letseng totaled $ 12.3 million for 2016.
"The market is large special diamond that is known Letseng remains stable today, but relatively small number of diamonds recovered during 2016, had a negative impact on earnings and cash flows of the company in the past year ", - said CEO Klifford Elfik (Clifford Elphick).
"With regard to the operations, all other production rates were achieved and are in line with expectations", - he added.
At the same time, Gem Diamonds said its mine Ghaghu (Ghaghoo) Botswana 12,380 carats produced during the same period, which represents an increase of 60% compared to 7720 in the previous quarter carat.
The 16,989 carats were sold during the period from this mine for a total of $ 2.4 million, and the average price was $ 142 per carat.
Elphick said that the fall in diamond prices in Botswana with Ghaghu to $ 210 per carat at the beginning of 2015 to $ 142 per carat at the last auction in December 2016 highlighted the poor state of the diamond market for this product category.
"The company will continue to focus on profit, and, as said before, the future of our operations may be revised We will decide in the first quarter of 2017 with consideration of the current financial viability.", - concluded the general director of Gem Diamonds.
Meanwhile, the company says that the general mood of the participants of the diamond market remained cautious.
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Pandya showed the delegation a presentation on the Indian cutting sector and throughout the industry of precious stones and jewelry in this country, and talked about its characteristics and achievements.
He also noted that India is the leading center for diamond cutting. It produces 14 of the 15 diamonds in the world. Meanwhile, Pandya also spoke about the problems facing the world diamond industry at the moment. "It's hard for companies to survive in such conditions," he said, "Because of the high prices for diamonds and the low demand and prices for diamonds, the profits of companies have fallen dramatically, which has become a serious problem for us."
Pandya also noted: " Indian diamond companies have already for several months kept high reserves worth almost $ 10 billion only in India and another $ 5 billion - in foreign offices.
In comparison, in other diamond centers, product stocks are stored for less than a short time. " He also talked about the benefits of the Special Customs Free Zone and that such large diamond companies as ALROSA, De Beers and Rio Tinto Will engage in direct sales of their diamonds to Indian companies,
he added that the Special Customs Zone will be opened soon and trade will begin immediately on its territory. "
BDB President Anoop Mehta said that his stock exchange There are 2,600 operating offices of diamond companies.
Botswana Vice President Mokwörtsi Masisi noted that he was impressed by the figures presented by the chairman of GJEPC and the president of BDB. "I was not prepared for this segment to be so large," he said, impressed by the indices of the Indian diamond industry: "In Botswana, we attach great importance to the Indian diamond industry and continue to consider India a very important partner." And if you value your partner , You will always strive to cooperate with him, "the vice-president said.
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