Gem Diamonds Ends Pandemic Year Cum Laude

Rough Market
03/02/2021 11:44

In its latest trade update, Gem Diamonds, the mining company that operates the high value diamond Letšeng mine in Lesotho, presented a remarkably good report considering the impact of the pandemic on the global diamond industry. Despite an 11% drop in carats sold y-o-y  to just under 100k carats, which the company attributes to the closure of the mine during a nationwide lockdown, revenue was up 4%, to US$189.2m, and Gem discovered no less than 16 100+ct stones in 2020 and reports a whopping 17% increase in achieved US$/carat price from its sales in Antwerp to 1,908 US$/ct, which is actually higher than pre-pandemic levels.

“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. …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.”, commented Gem Diamonds CEO Clifford Elphick.