News

Advanced Search

Gem Diamonds Revenue Drops

Apr 22, 2021 8:44 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT... 
Gem Diamonds reported a decline in first-quarter sales, marking a contrast after a stronger performance in pandemic-hit 2020.

Revenue fell 7% year on year to $43.9 million during the three months ending March 31, the company, which owns the Letšeng deposit in Lesotho, said in a trading update Thursday. Sales volume dropped 8% to 26,916 carats.

The slump in volume outweighed a 1% increase in the average price to $1,630 per carat. Prices of Letšeng diamonds reflected an improvement in market conditions, with five diamonds selling for more than $1 million each in the first quarter, the miner noted.

“Production from the mining mix was not as impressive as the second half of 2020, with fewer large diamonds recovered due to the [nature of the] areas accessed under the mining plan,” said CEO Clifford Elphick. “The mining mix should improve over the coming months as the richer parts of the satellite pit are accessed.”

Production rose to 29,010 carats from 26,110 carats a year ago, with the company’s 2021 output guidance remaining unchanged.

Last year, Gem Diamonds was one of the few major rough producers to record annual revenue growth, as sales grew 4.2% to $189.6 million. That helped net profit more than double to $24.3 million.

Image: The Letšeng mine. (Gem Diamonds)
Tags: Clifford Elphick, Gem Diamonds, Lesotho, Letšeng, Letšeng mine, mining, Rapaport News
Similar Articles
Gem Diamonds 254 ct May 2021Letšeng Mine Produces 254ct. Rough
May 04, 2021
Gem Diamonds has unearthed a 254-carat rough stone in Lesotho, marking a return to high-value discoveries following a lull.The
De Beers Orapa mineDe Beers’ Rough Production Falls
Apr 22, 2021
De Beers reported a decline in rough-diamond production in the first quarter while maintaining its full-year guidance as demand
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.