DiamondCorp makes sizeable profit from split diamonds

DiamondCorp makes sizeable profit from split diamonds

DiamondCorp PLC (LSE:DCP) announced it has spent US$1 million on underground equipment at the Lace Mine in South Africa.

The producer’s beneficiation joint venture has allowed it to take a 22.1 carat diamond and split it into two, creating a 7.2 carat emerald cut diamond and a 0.9 carat pear-shaped stone.

This sold for $261,361 and DiamondCorp shared half of the profit with a return of $71,979.

Paul Louden, the firm’s chief executive said: “This is an early indication of the significant additional value which can be created through beneficiating special and exceptional quality diamonds from Lace and gives management insight into how the stones perform when they are cut and polished.”

The company also noted it has addressed breakdown issues that have hindered production by buying four trucks, two single drill rigs and two loaders. The $1 million price of these used vehicles is a quarter of the cost of purchasing new.

The fleet’s additions will give DiamondCorp a greater push of production of up to 30,000 tonnes per month at the Lace Upper K4 Block.

The firm plans to generate 75,000 carats this year and 125,000 in 2017.