20 Sep 2016 12:45
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