Gem Diamonds Posts H1 Profit, Sales $117.8 Million

Diamond miner Gem Diamonds posted an $8.4 million profit for the 6 months ended June 30, 2009, a 31.5 percent year-over-year decline. Revenues declined 29.4 percent to $117.8 million during the period.

The mining group implemented a cash preservation strategy in response to the global financial uncertainty last year, resulting in the group ending the period with $120.5 million of cash on hand.

In his outlook, CEO Clifford Elphick noted that diamond prices firmed during the second quarter of 2009. “However, the level of debt and diamond stocks in the cutting centers remains relatively high. Demand for top quality, top color, large diamonds continues.”

He adds that he remains cautious about the level of retail diamond jewelry demand in the U.S. in the forthcoming Thanksgiving and Christmas Season. Due to this, the Gem “remains focused on preserving existing cash and generating profits from its producing operations.”