Gem Diamonds Revenues Rise 9.5% in 2010

(IDEX Online News) - Diamond miner Gem Diamonds reported a 9.5 percent increase in annual revenue to $266.4 million and a $54.5 million pre-tax profit, up 39 percent from 2009, the company said on Tuesday. It noted a strong recovery in rough diamond prices in the last quarter of 2010.

Gem Diamonds recovered more than 500 rough diamonds greater than 10.8 carats in 2010 at its Letseng mine in Lesotho. Among the large diamonds are three diamonds that weigh 196 carat, 184 carat and 116 carat.

During the year, the firm was awarded a mining license for the Gope deposit in Botswana, and plans are underway for construction of a mine at the site.

The Letseng operation gained control of its rough diamond sales and marketing after settling with WWW, which held the marketing rights. Gem said that with the new marketing ability it’s developing strategies for “downstream activities and capabilities.”

“2011 has begun on an extremely positive note,” said CEO Clifford Elphick. “Not only have rough diamond prices continued to increase as a result of perceived supply shortages, but polished prices have too, and volumes of trading are pleasing.”