The company said this average realised value per carat represented the continued lower than expected occurrence of larger, better quality diamonds and a subdued market, as was experienced in the previous quarter.
Firestone said a combination of oversupply and the previously reported Indian de-monetisation programme was still having an impact on the lower quality run of mine goods, as well as the fact that the summer months are traditionally the quietest time in the rough selling season.
It also attributed the weaker values for its stones to the lower-than-expected occurrence of larger, better quality diamonds at Liqhobong.
“The board believes that the lower frequency of higher value diamonds to date is potentially a function of the mining that has taken place since commissioning in the lower grade areas within the open pit, and which is now nearing completion,” it said.
“Over time, mining will progress into all areas of the open pit and the board expects the average value per carat to improve.”
Firestone said it, however, anticipates an improvement in the occurrence of higher quality diamonds as the higher grade kimberlite areas are mined and treated.
“Management continues to analyse the variability in average diamond values that it has experienced to date, which has seen the average values achieved range from US$107 /ct to US$69 /ct,” it said.
The company had sold all 505,706 carats recovered, since commencement of production late last year, for $41.3 million or $82 per carat.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished