Namakwa Diamonds Expects to Produce 220,000 Carats in FY 2012

Namakwa Diamonds expects to produce a total of 220,000 carats of rough diamonds from its operations in Lesotho and South Africa, the company announced last week in the Q1 2012 management statement posted on its website.

Thus far in Q1, Namakwa’s Lesotho operations have produced 3,921 carats, which will be sold via an independent tender in Johannesburg between January 18-27. This production consists of predominately small diamonds with an average size of 0.21cts.

Production guidance for FY2012 remains unchanged at 200,000 carats.

The company’s South Africa operations produced 6,478 carats during the period, 5,408 carats were sold at an average price of $627/ct. This included 11 special diamonds (above 10.8cts).

Following the period end, a 37.46-carat diamond was discovered on the company’s operations on the South East Node, which is expected to realize significant value during the January 2012 sales process.

Namakwa’s South African operations’ diamond production guidance for FY2012 remains unchanged at 20,000 carats.

Namakwa CEO Richard Collocott commented: “We are pleased to report a positive set of results for Q1’FY2012 following a difficult start to the financial year, with Management executing on Namakwa’s stated strategic goals to restructure the business.”