Gem Diamonds has raised its production and sales-volume forecast for the full year as operational initiatives at its processing plant have resulted in a greater proportion of large rough stones.
The miner expects output from its Letšeng mine in Lesotho to reach 98,000 to 101,000 carats for the 12 months, while its sales volume will get to between 100,000 and 103,000 carats, it said last week. The increase comes as the company quadrupled the number of diamonds over 100 carats from the year before.
“The diamond market remains under significant pressure, which has negatively impacted prices achieved during the period,” the company explained. “An increase in both the number of larger than 100-carat diamonds and overall diamond recoveries aided in offsetting the market impact on prices.”
Meanwhile, profit for the first half came to $5.5 million, versus $1.5 million during the same period of 2023. Revenue rose 9% to $78 million for the six months that ended June 30. The growth was the result of a 9% increase in sales volume to 56,944 carats, even as the average price remained flat at $1,366 per carat. Output from the deposit was up 10% year on year to 55,873 carats, with the recovered grade improving 7%, Gem Diamonds noted.
During the January-to-June period, the highest price achieved for a white rough diamond was $41,007 per carat. The company’s net debt for the six months declined to $8.4 million from $21.3 million as at December 31.
Since the end of the period, Gem Diamonds has recovered two additional diamonds weighing more than 100 carats. That includes a 129.71-carat, white, type II diamond, unearthed on August 23, the company added.
Image: The 129.71-carat rough. (Gem Diamonds)
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