UK jeweller Graff buys 4.5 percent stake in Gem Diamonds
LONDON, November 22, 2008 – UK jeweller Graff Diamonds has acquired a 4.5 percent stake in miner Gem Diamonds.
The two companies have enjoyed a strong relationship over the two years since Gem Diamonds acquired its majority stake in Letseng Diamonds. Over this time Graff has grown to be one of Letseng’s key clients, having acquired both the Lesotho Promise and the Letseng Legacy diamonds, among other important diamonds.
Gem Diamonds and Graff share a focus on the top end of the diamond market.
In a separate satement, Gem Diamonds said that as a result of the global financial crisis and the sharp falls in diamond prices experienced since October 2008 there is significant uncertainty over what realised diamond prices will be for the remainder of Q4 2008.
Given the weakening diamond prices and the uncertainty, Gem Diamonds’ performance for 2008 will be significantly lower than its expectations in August, at the time of its interim results, and could result in a loss for the full year 2008, the miner said.
“If diamond prices remain at Q4 2008 levels during 2009, Gem Diamonds should be in a position to deliver an improved performance in 2009,” it added.