Gem Diamonds revenue drops slightly as forecast remains on track
Gem Diamonds reported a 10 per cent fall in revenue for the first half of 2021 due to lower diamond prices and volumes.
The firm made $104m (£75m) in revenue from its sale of rough diamonds, down from $115.1m (£83m).
The diamond miner, who owns Letšeng mine in Lesotho, recovered 58,831 carats, a slight increase from the previous period. It sold 55,124 carats, a one per cent decrease from the second half of 2020.
The firm said it sold 10 diamonds for more than $1m (£723k) each, bringing in $36.1m (£26m) in revenue. Three diamonds greater than 100 carats were recovered.
On average, the price per carat achieved in the period was $1,186 (£858).
“It is pleasing to see demand for Letšeng’s high-quality diamonds continue the upward momentum from late 2020 with strong prices achieved,” said chief executive officer Clifford Elphick.
The diamond market has remained steady despite the pandemic. Shareholders were paid $3.5m (£2.5m) in June for the 2020 dividend.
The full-year production and cost guidance for 2021 remains on target, said the diamond producer.
They added that the process to sell their Ghaghoo mine in Botswana, announced in 2019, continues. The rollout of vaccinations for the workforce at the Letšeng mine will begin this month.