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Meya Prosperity diamond elevates Trustco’s diamond trajectory

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


 

 

About The Author

Daniel Steinmann

Brief CV of Daniel Steinmann. Born 24 February 1961, Johannesburg. Educated at the University of Pretoria: BA, BA(hons), BD. Postgraduate degrees are in Philosophy and Divinity. Editor of the Namibia Economist since 1991. Daniel Steinmann has steered the Economist as editor for the past 29 years. The Economist started as a monthly free-sheet, then moved to a weekly paper edition (1996 to 2016), and on 01 December 2016 to a daily digital newspaper at www.economist.com.na. It is the first Namibian newspaper to go fully digital. Daniel Steinmann is an authority on macro-economics having established a sound record of budget analysis, strategic planning and assessing the impact of policy formulation. For eight years, he hosted a weekly talk-show on NBC Radio, explaining complex economic concepts to a lay audience in a relaxed, conversational manner. He was a founding member of the Editors' Forum of Namibia. Over the years, he has mentored hundreds of journalism students as interns and as young professional journalists. He regularly helps economics students, both graduate and post-graduate, to prepare for examinations and moderator reviews. He is the Namibian respondent for the World Economic Survey conducted every quarter for the Ifo Center for Business Cycle Analysis and Surveys at the University of Munich in Germany. He is frequently consulted by NGOs and international analysts on local economic trends and developments. Send comments to daniel@economist.com.na