Gem Diamonds 196-Carat Diamond From Lesotho Mine Could Fetch $11.8 Million

A 196-carat diamond unearthed by Gem Diamonds Ltd. at its Letseng mine in Lesotho may fetch as much as $11.8 million, according to Panmure Gordon and Co.

Offers for the stone, sold as a rough diamond, could come in at between $7.8 million and $11.8 million, Alison Turner, a London-based analyst at Panmure, wrote in a report to investors today.

The diamond is the latest large stone to be discovered at Letseng by the company. A 478-carat diamond found at the mine in 2008 was sold for $18.4 million and stones weighing 603 carats and 493 carats were discovered in 2006 and 2007, respectively.

“This remarkable rough diamond is expected to achieve a substantial price per carat as preliminary examinations indicate that it is expected to produce top color and top clarity polished diamonds,” London-based Gem said today in a statement.

In February, Petra Diamonds Ltd. set a record for the highest sale price for a rough diamond when it sold a 507.6- carat stone for $35.3 million. A carat is a fifth of a gram.

To contact the reporter on this story: Thomas Biesheuvel in London at tbiesheuvel@bloomberg.net.

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