StockMarketWire.com - Gem Diamonds delivered mixed guidance, downgrading its outlook on diamond sales, but estimating costs to fall even further for the full year.

Carats sold for the full-year were expected to be in the range of 111,000 to 113,000 down from previous guidance of 115,000 to 119,000.

'Due to the contact variance in the Satellite pipe, the forecast contribution for 2019 had been reduced,' the company said.

The company said, however, that capex in 2019 had been reduced by about US$7.0m, reducing expected capital spend for the full year to US$12.0m.

Carats sold in the third quarter fell 10% to 25,631 and the average price per carat was down 6%.

'Letseng's high-value large diamond production has experienced price pressure during the period. This, together with diamonds sold from the lower value ore mined in the previous quarter, resulted in an average price achieved of 6% lower than the previous quarter,' the company said.

The company also said the terms of the renewed mining lease were agreed with the Lesotho Mining Board, following a 'successful statutory negotiation process.'

'The lease is renewed for an immediate period of 10 years with an exclusive right granted to Letseng to renew the mining lease for a further period of 10 years,' it added.

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