Gem Diamonds Reports 'Improved' Prices in Q1

(IDEX Online News) – Gem Diamonds Ltd reported a strong diamond market with improved prices in the fourth quarter of 2013 continuing into the first quarter of this year in its 2013 financial results.

The miner's focus for 2013 was on initiatives to reduce diamond damage at its Letšeng mine in Lesotho which resulted in a "significant reduction in diamond damage".

Meanwhile, the development of the Ghaghoo mine in Botswana has made good progress and is on-track for commercial production starting in the second half of this year.

"The technological and strategic investments made during the year, together with a more stable diamond market resulted in revenue of $213 million generated from the sale of 97,294 carats from Letšeng (an increase of 5 percent compared to revenue of $202 million from the sale of 107,617 carats in the prior year)," the company said in a statement.

CEO Clifford Elphick said: “I am delighted that the company is able to report a pleasing set of results for 2013, during which good progress was made on all strategic initiatives, including the reduction of diamond damage at Letšeng. Operations in 2014 have begun well and we are looking forward to bringing the Ghaghoo mine into production in H2.

I am pleased to report that the Board of Directors has the intention of paying a maiden dividend to shareholders at the end of the 2014 financial year, based on the group’s strong balance sheet and the anticipated performance of the company’s operations.”