Strong Demand Drives Gem Diamonds Sales

RAPAPORT… Gem Diamonds’ full-year revenue grew in 2021 as the global rough market continued to recover.

Sales from the company’s Letšeng mine in Lesotho rose 6% to $201.3 million for the year, the company said Tuesday. Sales volume jumped 11% to 109,697 carats, outweighing a 4% drop in the average price to $1,835 per carat.

The decrease in the average price was primarily due to the sale of a lower number of large and high-quality diamonds than in 2020. During 2021, the miner sold 21 diamonds for more than $1 million each, compared to 34 diamonds the year before.

Production for the full year rose 14% to 115,335 carats, as Gem Diamonds recovered higher-grade ore. The company unearthed six diamonds greater than 100 carats during the year, versus 16 a year earlier.

Revenue for the fourth quarter fell 8% year on year to $50 million. The average price climbed 6% to $2,018 per carat, while sales volume fell 13% to 24,790 carats. Production for the period increased 17% to 33,069 carats.

In August, Gem Diamonds announced it had sold its Ghaghoo mine in Botswana to Okwa Diamonds, a company owned by Vast Resources and Botswana Diamonds. However, Vast later informed the parties that it did not intend to continue with the purchase. Botswana Diamonds said it had found an alternative partner so it could go ahead with the deal. The companies are working to reach an agreement and have extended the sale deadline from January 31 to March 31.

The sale plans mark the third time Gem Diamonds has tried to sell the deposit over the past four years.

Image: The Letšeng mine. (Gem Diamonds)