Diamonds – selling
well for NAM
 
Kimberley, South Africa — MININGREVIEW.COM — 14 July 2008 – New African Mining AG (NAM) – a Kimberley-based company mining and selling rough diamonds – has obtained what it described as excellent results from its second tender auction

A company announcement here revealed that the sale on tender of a portion of production late last month realised a total of US$196 000 (almost R1.6 million). It added that prices were comfortably above expectations at a well-attended sale which attracted an international audience.

NAM tendered only 770 carats of production from its two operating units – the Simolotse underground mine and the Kamfersdam tailings reprocessing unit. The announcement said company launch estimates for these diamond sales had been US$80 and US$220 per carat respectively, but the realisations were US$103.33 and US$352.82 – a 29% and 60%improvement respectively on sales projections.

The best individual stone, from Simolotse, weighed 8.372 carats and sold for US$19 289 – US$ 2 304 per carat. Significantly, a single stone from the Kamfersdam operation – at 4.744 carats – achieved a price of US$16 647 or US$3 509 per carat.

The announcement went on to reveal that a special tender of 143 carats of selected stones from Simolotse production was completed on 3 July 2008. It was attended by selected buyers and realised US$73 000 (almost R600 000) in sales at a very good average of US$509.71 per carat. The best individual stone was 5.57 carats, and sold for US$12 627, or US$2 267 per carat. “The rising trend in monthly production is expected to be maintained as plant modifications planned for both operations are completed,” it added.

Chairman David Hargreaves commented: “Tender sales results so far have been above expectation and bode well for the revenue projections of the company. We are building towards our interim target of becoming one of the larger, mid-tier operators, and constant improvements and capital investments are being made in mining and processing capacities to ensure our development,” he added.