Vast Resources (VAST) has concluded its tender of an initial parcel of diamonds totalling 126,677.50 carats containing a mix of quality gem, low-grade gem and industrial grade stones in Dubai.
Vast sold 123,711.8 carats of the low-grade gem and industrial stones at an average price of US$6.87 per carat in line with expectations, and 216.97 carats of a mix of higher-grade gem quality stones at an average price of US$1,084.30 per carat.
That represents the sale of 98% of the goods offered.
Total revenue to Vast net of commissions is approximately US$1.09 million.
The remaining unsold goods from the tender, comprising approximately 2,965.68 carats of higher-grade gem quality stones, are still being marketed and are likely to be sold in due course.
It is anticipated that these unsold stones will be marketed together with the as yet untendered stones, which together are expected to deliver the majority of the value to shareholders and will be sold in an orderly manner.
"This first auction process paves the way for future tenders for the higher quality stones, and we look forward to providing further updates regarding those sales in due course," said Vast’s chief executive Andrew Prelea.
View from Vox
This is a promising start from Vast in its diamond tendering process, with the likelihood of more value to be realised in due course. The cash will be welcome as the company addresses the requirements of its metals portfolio in Eastern Europe and Central Asia. Watch for more news.