Diamondcorp Plc Diamond Sales (5021R)

TIDMDCP

RNS Number : 5021R

Diamondcorp Plc

12 December 2016

12 December 2016

DiamondCorp plc

AIM share code: DCP & JSE share code: DMC

ISIN: GB00B183ZC46

(Incorporated in England and Wales)

(Registration number 05400982)

(SA company registration number 2007/031444/10)

("DiamondCorp", "the Group" or "the Company")

Diamond Sales

DiamondCorp is pleased to announce that the Company's operating subsidiary, Lace Diamond Mines (Pty) Ltd ("LDM"), has completed the sale of diamonds recovered from the Lace mine prior to LDM being placed in business rescue.

-- A total of 5,129.9 carats were delivered to Johannesburg for tender. After boiling losses, a total of 5,116.6 carats were prepared for sale.

-- The parcel comprised run of mine production with five stones larger than 10 carats and the largest stone being a 19.43 carat non-gem diamond. Unfortunately, all the larger goods were either non-gem, or contained carbon inclusions or cracks which resulted in reduced valuations.

-- Nonetheless, all reserve prices were exceeded and the diamonds were sold for $590,744.86, representing $115.46 per carat.

-- In the size fractions (+7 sieve size) up to 5 carats in size, prices achieved were comparable or better than achieved throughout the year.

   --      In the smallest size fractions (-7 sieve size) prices were weaker. 
   --      All sales proceeds have now been received. 

-- As a result of this sale, the average carat value achieved for the year has fallen to $146/ct, 11% lower than the $164/ct forecast average.

-- While a proportion of this fall is the result of the weaker market in the lowest size fractions, it is largely the absence of high quality gems amongst the larger stones in the last two sales. One large gem could just as easily swing the average the other direction.

Contact details:

DiamondCorp plc

Paul Loudon, Chief Executive

Tel: [phone]

Chris Ellis, Interim Non-Executive Chairman

Tel: [phone]

UK Broker & Nomad

Panmure Gordon (UK) Limited

Adam James/ Atholl Tweedie

Tel: [phone]

JSE Designated Advisor

Sasfin Capital (a division of Sasfin Bank Limited)

Megan Young

Tel: [phone]

SA Corporate Advisor

Qinisele Resources Proprietary Limited

Dennis Tucker/Andrew Brady

Tel: [phone]

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No 596/2014 ("MAR").

This information is provided by RNS

The company news service from the London Stock Exchange

END

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December 12, 2016 02:00 ET (07:00 GMT)