Mountain Province Sees Average Price Decline

RAPAPORT... The average price of rough diamonds sold by MountainProvince fell in December as a large proportion of the goods on offerwere smaller stones, the company said. The miner sold 364,000 carats of rough from itsGahcho Ku?(C) mine at an average price of $53 per carat, for a total of$19.1 million, it reported in a statement Wednesday. The average price was below October's $60 per carat andNovember's $66 per carat. However, the like-for-like price for equivalentdiamonds rose 3% over the previous month, the company explained. The December sale, Mountain Province's 10th and final tenderof the year, did not include any fancy or special diamonds, as De Beers won thebid to sell these goods. Mountain Province holds a 49% share in the Canadamine, while De Beers owns the remaining 51%. The two companies split the "run-of-mine" production according to their stakes in the venture,but compete against each other for higher-value diamonds. "Our 10th sale saw further stabilization of rough prices andstrengthening of competition, with over 150 companies attending the tender, thehighest to date," said Reid Mackie, vice president of diamond marketing atMountain Province. "This, combined with solid holiday sales results reported bythe retail sector, bodes well for a positive rough market reopening inJanuary."