Kimberley Diamonds says recommissioning of Lerala under review, downgrades 2014 guidance

Kimberley Diamonds said the recommissioning of the Lerala diamond mine in Botswana is under review.
The company acquired the Lerala mine last February as part of the takeover of Mantle Diamonds.
The current projected life of mine for Lerala was six years and it was projected to produce 400,000 carats per year at full production.
Rapaport reports that Kimberley Diamonds would also start alluvial operations at the Smoke Creek project and re-treatment of coarse tailings at Ellendale E9 in Australia between 2015 and 2017.
Meanwhile, the company was set to cut and polish its rough diamond production to help boost revenue and improve profit margins through value-added activity.
It revised its revenue forecast downward to $20 million from its previous guidance of $20.5 million for the fourth quarter and fiscal year that ends on June 30, 2014.
The forecast for earnings before tax and interest was lowered to $1.5 million from $5 million previously.
This was after its unsuccessful negotiations to raise prices on its supply of fancy yellow diamonds to Tiffany & Co.
Rapaport reports that Kimberley Diamonds was seeking a price increase for its supply of fancy yellow diamonds that Tiffany's cutting and polishing subsidiary, Laurelton Diamonds, purchases.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished