Meya Prosperity diamond elevates Trustco’s diamond trajectory
Meya Mining, the diamond mining operation in the Trustco Group, earned a cool N$240 million in revenue from its first batch of diamonds mined at the company’s Sierra Leone mine. This income was generated in just over two months, resulting from three separate transactions.
In a bulletin on the Stock Exchange News Service (SENS) of the Johannesburg Securities Exchange, released just before the end of 2017, Trustco Group Holdings Ltd announced the results of its first-ever diamond sales.
A small pilot consignment of just over 2600 carats recovered from overburden and waste from previous mining operations, net the miner just shy of US$400,000. This sale was concluded on 02 October 2017, representing the first-ever income for the Trustco Group from diamonds. This is a new revenue stream for the diversified investment group. The sale was concluded at a modest US$149 per carat.
In a second transaction on 15 December 2017, two parcels totalling 2641 carats grossed the company another US1.6 million at a much higher carat price but the biggest contribution came from one single diamond, the 476.89 carat Meya Prosperity diamond which grossed US$16.5 million at the extraordinary carat price of US$34,599.
“Apart from the 476.89 carat Meya Prosperity Diamond the full sample was placed on tender which was facilitated by Miranel BVBA in Antwerp from 5 to 12 December 2017,” according to the SENS announcement.
In total Meya Mining sold 5765.48 carats, earning US$18,5 million at an average carat price of US$3210, in the relatively short span from 02 October to 20 December 2017.
Trustco stated that the Meya Prosperity diamond was sold to a first-tier global jewellery brand. If the diamond, once polished, grades to a D Flawless, another US$500,000 will be paid by the jeweller. This diamond was sold in a private bid after extensive consultation with market experts and two independent valuators.
Trustco said a resource statement will be issued later this year once all three bulk samples sold to date, have been processed and verified by SRK Consulting Canada