Gem Diamonds helped by record prices

Gem Diamonds, the global diamond firm has seen its cash position boosted by record prices for rough diamonds.It's facility in Lesotho, Let?eng, achieved a record average value of US$3 052 per carat in the first half of 2011 while at its Ellendale mine in Australia fancy yellow diamonds (which are sold to Tiffany & Co.) were achieving $4 045 per carat up from US$2 588.The company says it has also negotiated a new pricing mechanism for the fancy yellows which will be back dated to October 2010. Gem says the pre-feasibility study for the Let?eng Expansion is nearing completion and a detailed presentation will be made to investors in London in early September 2011. Gem Diamonds Chief Executive, Clifford Elphick, said of the results:"Increasing consumption of diamond jewellery in the US, China and India, the lack of significant new mines coming on stream and very low stocks of rough and polished diamonds in the cutting centres is being reflected in strongly rising prices. Prices are extremely strong for rare, large high quality, good colour diamonds, of which Gem Diamonds' Let?eng Mine in Lesotho is the single largest producer. The strength in prices for Ellendale's rare fancy yellow diamonds which are sold to Tiffany & Co are also reflected in the 35.3% price increases in H1 2011."BS Gem Diamonds Di