Reuters: Hot Stocks: Gem Diamonds finds another high-value diamond, shares rise

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Gem Diamonds finds another high-value diamond, shares rise Jun 26th 2013, 07:41 June 26 | Wed Jun 26, 2013 3:41am EDT June 26 (Reuters) - Miner Gem Diamonds Ltd said it recovered a 100 carat diamond from its Letseng mine in Lesotho, sending its shares up as much as 8 percent. The discovery of the rough diamond on June 22 is the third diamond of over 100 carats in size to be recovered from Letseng since May. A 164 carat diamond from Lesotho sold for $9 million last month. "The recovery of three diamonds each with a likely price-tag in the $6 million to $10 million range should be viewed against total 2012 revenue of $202 million," Citigroup analyst Jon Bergtheil said. "The three diamonds alone could come to represent more than 13 percent of 2012 turnover." Letseng's June export achieved an average price of $2,087 per carat, for a total value of $22 million, compared with an average price of $1,599 per carat for the first three tenders in the year, Gem Diamonds said in a statement. "Mining will steadily increase in the higher value and higher grade satellite pipe in the second half of this year, and it is anticipated that revenues will therefore show a resulting increase," Chief Executive Clifford Elphick said. Shares in the miner were up 6 percent at 120 pence in early trading on Wednesday on the London Stock Exchange. (Reporting by Brenton Cordeiro in Bangalore; Editing by Supriya Kurane) Link this Share this Digg this Email Reprints

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