International

Gem Diamonds sales rise in H1

Gem Diamonds has announced that it generated $29.4m (£22.3m) in its half-year results, after 16 diamonds sold for more than $1m (£760,000) each.

This marked a rise against the 12 diamonds that sold for $26.6m (£20.2m) collectively in the first half of 2019. 

During the period, the average price of diamonds rose from $1,576 (£1,197) to $1,707 (£1,297) per carat.

The group also reduced its net debt position by $4.6m (£3.5m) to $5.5m (£4.2m) in the half-year ended 30 June 2020. 

While its mine in Letšeng temporarily suspended operations between 28 March and 26 April, it returned to its standard treatment capacity during the second quarter in line with the Lesotho government’s regulations.

Gem Diamonds’ CEO, Clifford Elphick, said: “The positive sales results during the period demonstrate the continued demand for Letšeng’s high quality diamonds with an average price of $1,707 per carat, despite the challenging global conditions. 

“This, together with the pro-active cost control and cash preservation measures implemented across the group, has resulted in positive cash flow generation during the Period.”

He added: “We are also pleased that Letšeng has quickly returned to its standard treatment capacity post the lockdown period, as well as ramping up waste mining activities from July.

“Gem Diamonds continues to ensure that the group’s safety protocols relating to Covid-19 are strictly adhered to and that appropriate support is provided to employees.’’

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