News

Advanced Search

Gem Diamonds Back to Profit in First Half

Sep 2, 2021 7:23 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT...
Gem Diamonds returned to the black in the first half of 2021 amid strong sales and a higher average price.

The company reported a profit of $9.3 million for the six months ending June 30, compared with a loss of $1.7 million a year earlier, when Covid-19 temporarily shut down its Letšeng mine in Lesotho and restricted tenders. Profit also increased 121% over the first half of 2019, Gem Diamonds said Thursday.

Revenue from rough diamonds rose 50% year on year to $104.5 million. Sales volume jumped 27% to 55,123 carats, with the average price up 10% to $1,886 per carat. The miner also sold its Ghaghoo deposit in Botswana — which had been on care and maintenance — during the period.

Production at Letšeng climbed 36% to 58,831 carats, because the miner was able to operate at full capacity. Output rose 4% over pre-pandemic levels due to a higher proportion of rough mined from the site’s satellite pipe, which contains higher-grade ore.

The company has implemented a cost-cutting program, which has saved $95.4 million to date. It predicts it will reach its planned savings of $100 million by the end of 2021.

In September, Gem Diamonds plans to hold a tender of Letšeng rough in Dubai for the first time. It has previously sold rough only in Lesotho and Belgium.

Image: The Letšeng mine. (Gem Diamonds) 
Tags: Botwana, COVID-19, diamonds, Gem Diamonds, Ghaghoo, Lesotho, Letšeng mine, Rapaport News, Rough Diamonds
Similar Articles
De Beers haul truck transporting kimberlite at VenDe Beers Adjusts Production Outlook Again
Oct 21, 2021
De Beers’ full-year production will be at the lower end of its previous guidance because of “continuing operational challenges,”
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2021 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.