MASERU — The Letšeng Star, a 550 carat diamond that was discovered in August has been sold for a staggering M132 million.
In a statement to the media on Monday, Letšeng Diamonds and Gem Diamonds (Pty) Ltd said the Letšeng Star had been sold into a profit sharing arrangement for a rough price of US$16.5 (M132 million)million.
The diamond mine said it expected to benefit from a significant share of the downstream polished margin uplift resulting from the sale of polished stones cut from Letšeng Star.
“The Letšeng Star has the potential to yield an exceptional polished product and the profit sharing arrangement for the polished margin of the Letšeng Star will ensure that its true value is realised and that Letšeng Diamonds benefits directly
from the exposure to the resulting upside,” Clifford Elphick, Letšeng Diamonds and Gem Diamonds’ chief executive officer said.
“Letšeng Diamonds’ strategy of maximising revenue generation from our rough diamonds by seeking value-added initiatives further up the diamond value chain is gaining importance for the group, and we are becoming increasingly successful in selling rough and polished diamonds with good margins being realised.”
Letšeng Diamonds (Pty) Ltd and Gem Diamonds holds a 70 percent stake in the mine with the government of Lesotho owning the remaining 30 percent.
The Letšeng Star, a 550 carat, Type IIa, D colour white gem, was discovered on August 19 at Letšeng in Mokhotlong district.
It is currently ranked the 14th biggest white diamond to be recovered in the world. It is also deemed to be the fourth diamond of historical significance to be recovered at Letšeng since 2006.