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Gem Diamonds' Revenue +5% in 2013
Mar 18, 2014 5:06 AM
By Deena Taylor
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RAPAPORT... Gem Diamonds reported that its revenue rose 5 percent year on year to $213 million in the fiscal year that ended on December 31. The increase resulted from improved rough diamond prices and higher polished sales. The group posted a profit of $38.2 million for the year compared with $32 million one year ago.
The company noted that during 2013, the rough diamond market saw less volatility than in recent years. Top prices were achieved for Letšeng's production, particularly high-quality, large diamonds. The company sold 97,294 carats of diamonds from Letšeng for an average $2,043 per carat, up from $1,932 per carat the previous year. Revenue was given quite a boost from the sale of a rare 12.47-carat blue diamond, which sold in October for $7.5 million, setting a Letšeng record of $603,047 per carat.
Production at the mine fell 17 percent to 95,053 carats mainly due to reduced contribution of satellite ore, together with some internal basalt dilution, which took place in the marginal blocks in the main pipe. During the year, 84 percent of ore was sourced from the main pipe and 16 percent from the satellite pipe compared to 76 percent main pipe and 24 percent satellite pipe ore in 2012.
Gem Diamonds also owns the Ghaghoo mine in Botswana, which is on track to commence production in the second half of 2014.
Clifford Elphick, Gem Diamonds' CEO, explained the company's strategy in 2014 is to focus on bringing Ghaghoo into production and continued development and expansion of operations at Letšeng. The company's secondary growth strategy will involve maximizing revenue and margins from rough diamond production by expanding sales and marketing. He added that Gem Diamonds intends to pursue diamond manufacturing and partnership arrangements down the diamond value chain.
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Tags:
Botswana, Deena Taylor, diamonds, Gem Diamonds, Ghaghoo, Lesotho, Letšeng
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