Market NewsNews910 carater recovered at Letseng

910 carater recovered at Letseng

A 910 carat diamond recovered at Gem Diamonds’ Letšeng mine in Lesotho could fetch more than $40 million and help support the firm’s under-pressure balance sheet, reported.

Shares in GEM gained 13% in early morning trade on the London Stock Exchange. On a 12 month basis, however, the company has lost a fifth of its value, said the report.

“We currently forecast Letšeng to achieve an average realised price of $2,452/ct and earnings before interest, tax, depreciation and amortisation of $104 million in 2018, which includes the recovery of large high value diamonds normalising to historical levels,” said Edward Sterck, an analyst for BMO Capital Markets, the report said.

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