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What a gem: 100 carat diamond discovered in Lesotho

by , 26 June 2013

London listed miner Gem Diamonds uncovered another 100 carat diamond at its mine in Lesotho. The company's shares have reacted positively to the find, gaining nearly 8%. Read on to discover more about this sparkling find…

Saturday left Gem Diamonds rubbing its hands with glee after another 100 carat diamond was uncovered in its mine in Lesotho.

Gem’s “share price rose by 7.74%” this morning after the find was announced, reports MiningWeekly.

It's the third large diamond found at the mine since May

It’s the “third diamond of over 100 carats in size to be recovered from Letseng since May,” reports Fin24. Last month saw “a 164 carat diamond from Lesotho sold for $9 million”.

Not only did Gem find a diamond of that size, it “recovered the white Type IIa diamond - a very rare type which is almost devoid of any impurities,” reports CNBC.

It’s expected to sell for in excess of $5 million reports Bloomberg.

“Gem said that its average selling price was $2,087 a carat in June compared with $1,599 a carat in its first three tenders of 2013.”

The Letseng mine has produced some of the world’s most infamous diamonds

The diamond mine in Letseng “has produced four of the world's top 20 diamonds,” adds CNBC. This includes the “15th largest, the 603 carat Lesotho Promise which was recovered in August 2006 and sold for $12.4 million”.

But it’s not all been plain sailing for Gem. “Despite the apparently bumper hoard in the Lesotho mine” its share price has plunged 42.26% over the past year, reports CNBC. This relates to lower diamond prices last year despite increased production, and falling demand for the luxury goods.

De Beers might regret the day it sold the mine. It “was bought by Gem in 2006 for $118.5 million,” adds Bloomberg.

With its new equipment now up and running at the mine, who knows what other diamonds Gem Diamonds will uncover.

What a gem: 100 carat diamond discovered in Lesotho
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