Gem Diamonds recovered 16 rough over +100 carats in 2020

Earned average price of US$1 908 per carat yet a lower YoY 

Gem Diamonds Limited provides the Trading Update detailing the Group's operational and sales performance from 1 October 2020 to 31 December 2020 (Q4 2020).  According to the Trading Update, the Group further increased its net cash position by US$33.1 million, ending the Period with net cash of US$34.2 million (Q3 2020: net cash US$1.1 million). 

Operational guidance metrics for the 2020 full year were achieved. During the Period, four diamonds greater than 100 carats were recovered to bring the total for the year to 16 & average price achieved for the Period was US$1 907 per carat. Over all 99 172 carats sold in the year, achieving an average price of US$1 908 per carat (2019: US$1 637 per carat).

Ten diamonds sold for more than US$1.0 million each, generating revenue of US$22.6 million during the Period, bringing the total number of diamonds sold for greater than US$1.0 million to 34 for the year. 

Diamond prices achieved in the Period were higher than those realised (on a like-for-like basis) before the onset of the Covid-19 pandemic in Q1 2020, reflecting overall improvement in market conditions. 

In the wake of Covid-19 the Group continues to meticulously implement its wide range of Covid-19 protocols, health and safety measures and other precautions to protect its employees and contractors at its operations. 

This has had a positive effect in containing infections across the Group. These measures include thermal screening, X-ray screening, Rapid Anti-body and Anti-gen Diagnostic screening and Polymerase Chain Reaction (PCR) testing, promotion of sanitation measures, appropriate social distancing and compulsory wearing of face masks and the provision of Personal Protective Equipment. 

As part of the Covid-19 management strategy, all suspected positive cases are safely transferred to their respective residences, or national health facilities if determined medically necessary, for quarantining, thus limiting suspected positive cases on mine site.

The Group continues to provide support to its workforce, contractors and surrounding communities in its efforts to curb the spread of the virus in all countries where it operates. In support of the Group's surrounding communities in Lesotho, 750 food parcels have been distributed to alleviate the additional hardship brought on by the pandemic.

Gem Diamonds' CEO, Clifford Elphick, commented, “The average price of US$1 908 per carat for the year demonstrates the strong demand for Letšeng's high value and quality large diamond production. The prices achieved (on a like-for-like basis) are higher than those realised in the pre Covid-19 market conditions of Q1 2020. 

This, together with the continued pro-active cost control and cash preservation measures implemented across the Group, has resulted in an increased positive cash flow for the Group during a most difficult time for the diamond industry.  

Gem Diamonds continues to ensure that the Group's safety protocols relating to Covid-19 are strictly adhered to and that appropriate support is provided to our employees, contractors and surrounding communities.” 

During the Q4 Diamond Market Prices achieved for Letšeng's diamonds reflected the improvement in market conditions experienced during H2 2020, with prices achieved in the Period, on a like-for-like basis, higher than that achieved before the onset of the Covid-19 pandemic in Q1 2020.