Gem Diamonds first half year profits drop 75 percent compared to 2018

Gem Diamonds published its results for the first half of 2019, reporting a revenue of $91.3 million, compared to $167.7 million during the first half of 2018.  The miner's earnings before interest, taxes, depreciation and amortization (EBITDA) stood at 25.3 million, compared to 70.7 million in 2018. Its attributable profit, from continuing operations was $6.6 million against $26.8 million in 2018. The considerable fall in income and profits also had its impact on the basic earnings per share: 4.8 US cents from continuing operations , opposite 19.4 US cents in 2018.

Commenting on the company's results, Clifford Elphick, Chief Executive of Gem Diamonds, said:

"Letseng achieved $ 1,697 per carat for the period with the sale of the 13.32 carat pink diamond achieving a Letseng record of $ 656,934 per carat, reaffirming the unique quality of Letseng's diamond production. The prices achieved for the period are 10 percent up from the prices achieved in the preceding six month period, notwithstanding the planned limited contribution from the Satellite pipe ore and current diamond market conditions. The Group has successfully implemented the business transformation program, already achieving $42 million net of fees, and is on track to deliver the planned $100 million in cost savings and efficiencies by 2021."