Gem Diamonds rough bags more by 54%

Gem Diamonds achieved of US$2 742 per carat in H1

Gem Diamonds Limited announces its Half Year Results for the period ending 30 June 2018 & highlights, record recoveries of large, high quality diamonds at Letšeng, combined with the discovery and subsequent sale of the Lesotho Legend have generated a strong financial performance.

According to the key highlights, Gem Diamonds revenue reached to US$167.7 million remained up 81% from US$92.9 million in H1 2017. At Letšeng, recovery of 910 carat Lesotho Legend, sold for US$40.0 million, recovered a half year record of ten diamonds greater than 100 carats, Record rough tender revenue of US$169.2 million over the previous year 2017 of US$88.8 million.

Average price of US$2 742 per carat achieved which was up 54% from US$1 779 per carat in H1 2017, 25 diamonds achieved a sales value of greater than US$1 million each & total carats recovered of 61 596 over the 50 478 carats in H1 2017.

Commenting on the results today, Clifford Elphick, Chief Executive of Gem Diamonds, said: "We are pleased to report our 2018 half yearly results. Letšeng's improved recoveries combined with the discovery and subsequent sale of the Lesotho Legend has generated a strong set of results. 

Letšeng produced a record number of diamonds greater than 100 carats for any six-month period in the mine's history reaffirming the exceptional and unique quality of Letšeng.

Subsequent to June, two further diamonds larger than 100 carats have been recovered, with the latest in August marking the twelfth such recovery for the year. This now positions 2018 as a record for recoveries of diamonds greater than 100 carats in a single year.

The market for Letšeng's high-quality diamonds has remained robust, with an average price achieved of US$2 742 per carat during the Period, up 54% compared to H1 2017 of US$1 779. It is also pleasing to report on the progress of the Business Transformation. This has already seen initiatives achieved in revenue, productivity improvements and cost savings to the value of US$47 million of the 2021 US$100 million target."