Gem Diamonds said that the long-term outlook for the diamond markets remains positive, even despite the decline in stone prices recorded in the fourth quarter of 2014 after a year of price growth.
Also representatives of the company said that the price decrease could continue in the first quarter of 2015.
The average price per carat of diamonds produced by the company in the fourth quarter was $ 2,140, while the total average cost of stones for Gem Diamonds is $ 2,603 per carat.
In addition, the company said that at the December auction of diamonds from the Letšeng mine, the average price per carat reached $ 2,799.
Gem Diamonds CEO Clifford Elphick said that the positive results of last year will allow the company to keep its promise of paying early dividends to shareholders after announcing the final results of 2014 in March.
Gem Diamonds also said that for the three months until December 31, 2014, 25,525 carats of diamonds were mined at the Letseng mine, compared to 28,365 carats in the previous quarter.
"The year of confident production at the Letseng mine helped to improve last year's results and control costs more efficiently.As the first phase of the modernization of the first enterprise and the project of the ore processing plant will be completed in the first and second quarters of 2015. Accordingly, both projects are within the specified time and budget "- said Elfik.
At the same time, Gem Diamonds reported stable progress in the first phase of the Ghaghoo project in Botswana, and that serious work had been done to stop the inflow of fissured water crossing basalt deposits in the mine.
An increase in the volume of output began, and the first diamond auction from the launched project is scheduled for the next month.
A total of 10,167 carats was received during the commissioning of the mine, including 20-carat white diamond, 17-carat white diamond, and 3-carat orange diamond, which indicates the presence of valuable colored diamonds in the ore body, the company said in a statement.