Gem Diamonds pledges its first dividend on increased earnings
GEM DIAMONDS yesterday posted a 23 per cent rise in full-year profit and said it would be issuing its first dividend at the end of this year, due to the world’s insatiable demand for precious stones.
The London-listed diamond miner reported net profit of $21m (£12.7m) in 2013, while revenue went up five per cent to $213m, generated from the sale of 97,294 carats. Rising diamond prices on the back of the US recovery and growing demand from Chinese consumers mean that revenues increased on the sale of less carats than the prior year. The company said that the Ghaghoo mine is set to start production in the second half of 2014, while improved prices are continuing into this year. “These were positive results for Gem Diamonds, which has already made a solid start to 2014 with the recovery of two specials which sold for $13.5m,” said Rob Broke, analyst at Westhouse Securities.