(Updating with comments from Fairfax)
Firestone Diamonds (LON:FDI) this morning declared itself “very satisfied” with the recent diamond tender held in Gaborone, Botswana, where it completed the sale of 7,111 carats, netting US$1.4 million in the process.
The company said demand from local and international buyers was extremely strong, with a total of 25 companies attending the event.
A total of 4,850 carats were sold from the Liqhobong Mine, in Lesotho, with stones coming from the man and satellite pipes and averaging $181 a carat, which represents an 85 per cent increase on December 2010 prices.
Exactly 2,241 carats originating from the BK11 kimberlite in Botswana were sold at the auction at an average price of $230 carats, up 30 per cent on December 2010 prices.
Excluding the diamonds held over from 2010, stones from BK11 sold for an average of $202 a carat.
Chief executive Tim Wilkes said: "We are very pleased with the results of our latest diamond sale, which show significant increases in prices achieved from both Liqhobong and BK11.
“The higher prices reflect the quality of production from the mines as well as the continued strength of the rough diamond market.
“We expect to see significant further increases in prices achieved for production from Liqhobong and BK11 as production at both mines increases in 2011".
The shares sparkled in early trade and were up 7 per cent at 32.7 pence at 10.42 am.
Broker Fairfax put out some upbeat comments on Firestone in its 'Daily Market Report'.
"These are good results for Firestone Diamonds and demonstrate the robustness of the diamond market which is of note as investors have raised concerns over the impact of the Japanese earthquake on the diamond market," according to analyst John Meyer.
"We look towards news on BK11 which is likely to be struggling economically until diamond yields are in line with plan that should be resolved with the new secondary crushing circuit," he added.