'Rough Diamond Market Continues To Be Challenging' - Stornoway Diamond
The average price per carat fell 9% in Stornoway Diamond's second quarter, the company said yesterday.
The company (TSX:SWY) realized an average price per carat of $76, compared to $83 during the same period a year ago.
However, the Quebec diamond miner sold more diamonds. The number of carats that found buyers was up 7% to 460,832.
Patrick Godin, President and CEO of Stornoway, said demand is soft.
"The rough diamond market continues to be challenging, with further decreases in pricing observed during the second quarter sales," said Godin.
The company said higher quality products were "...also negatively affected by the oversupply of rough diamonds relative to demand, the high inventory levels in the mid-stream and the reduced availability of bank financing in India."
Godin said this quarter also saw lower grades, but anticipates higher grades over the remainder of the year.
Stornoway is trading at 2.5 cents a share. It started the year at 20 cents.