Southstone Minerals sells 1,390.42 carats in fiscal Q2
Record Diamond Sales Overshadowed by Regulatory Non-Compliance and Stalled Uranium Pivot
The most recent news (March 2026) reports record quarterly gross diamond sales of $3.71M USD for Q2 2026, a 95% increase over Q1 2026. This was driven by the sale of 1,390.42 carats at an average price of $2,671/ct. A significant contributor was a 38.2-carat "special" diamond selling for over $616k. Operationally, the company has successfully transitioned mining to the Sandberg section of the Oena Mine. However, the news also confirms the company is currently in non-compliance with TSX Venture Exchange policies regarding board composition and officer appointments. Furthermore, the acquisition of Afrium Energy (Botswana uranium) has been delayed again, with the deadline extended to September 12, 2026.
The operational results are Materially Positive. The shift to the Sandberg section has fundamentally changed the production profile, increasing average stone sizes by 127% and price realization by 193% compared to previous sections. The $3.7M in quarterly sales is a "game changer" for a company that previously struggled with low-value alluvial recovery.
However, the Material Negative is the regulatory status. The company admits it cannot meet TSX-V requirements for an independent audit committee or separate CEO/CFO roles until the Afrium transaction closes. This creates a circular dependency: they need the deal to be compliant, but the deal is delayed due to "lengthy administrative processes" in Botswana. The financial impact is also muted by the 80/20 or 85/15 revenue split with contractors, meaning Southstone only sees a fraction (approx. 6.45% to 8.6%) of the headline gross sales.
Southstone Minerals focuses on the Oena Diamond Mine in South Africa, an alluvial property. Since 2014, it has produced over 11,000 carats. The project relies on contract miners (currently Rietput Delwery) who provide equipment and labor in exchange for the lion's share of diamond proceeds. The company is attempting to diversify into Botswana uranium via the acquisition of Afrium Energy.