Gem Diamonds Revenue Down in H1 2015

(IDEX Online News) – Gem Diamonds Limited reported revenue of $118 million for the six months ended June 30. This compares to $148.9 million in the first half of 2014. Profit dropped from $19.7 million last year to $15.4 million in the first six months of 2015.

Production decreased at the Letšeng mine, with the amount of carats recovered declining from 54,678 in the first half of 2014 to 50,019 carats. In addition, the average per carat price also dropped, from $2,747 last year to $2,264.

During the period, the company recovered five diamonds greater than 100 carats while 13 diamonds achieved a total sales value of greater than $1 million each.

Some 35,283 carats were recovered from the Ghaghoo mine, including 13 diamonds greater than 10 carats each.

The first parcel of Ghaghoo commissioning diamonds was sold in February 2015 for $2.1 million, or $210 per carat. In July, a second parcel was sold for $4.9 million ($165 per carat), a lower price given the current market conditions.

“Letšeng continues to consistently produce the large, exceptional quality diamonds. Prices for these goods have remained firm, despite the current challenging conditions in the diamond market,” said Gem Diamonds chief executive Clifford Elphick.

He said that Letšeng remains on track to meet its targets for the year while mine development and ramp up to full planned production rates continues to progress at Ghaghoo, despite challenges in localized ground conditions.