Paragon Diamonds (LON:PDG) has confirmed it will fast-track its mines at Lemphane and Mothae in Lesotho into production this year.
At full operational capacity (within the next three years) Paragon expects to be a 5Mln tonne per year producer of in excess of 100,000 exceptional carats with average values exceeding US$1,500/carat at current prices.
This could generate combined annual revenue of approximately US$160mln and combined profit of approximately US$97mln, said the company.
In the first year when both mines are in full production, Paragon expects combined revenues of approximately US$36mln.
Once in production, executive chairman Philip Falzon Sant Maduca said Paragon will have “a first class platform from which to operate and build a fully vertically integrated diamond company.”
Mothae’s acquisition remains subject to government approval, though the company had previously reported a constructive meeting with the Lesotho Minister of Mining on 22 June.
For the year to end December 2014, Paragon posted a loss of £13.4mln (£1.3mln).
Shares rose 1% to 5.56p.