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Gem Diamonds registers gains in the first half of 2022

Hopolang Mokhopi

GEM Diamonds, the majority shareholder in the Letšeng Diamond Mine, registered a marked improvement by selling 57 075 carats in the first half of 2022.

This is nearly 3000 carats more than the 54 573 sold in the second half of 2021.

In its recently released report on its performance from 1 January to 30 June 2022, the United Kingdom-based company said it had generated US$99, 6 million in the period. This is an improvement on the US$97, 3 million generated in the first half of 2021.

Gem Diamonds owns 70 percent shares in Letšeng Mine while the remaining shares are owned by the government.

“Fifty-seven thousand and seventy-five carats were sold during the period (H2 2021: 54 573 carats), generating revenue of US$99.6 million (H2 2021: US$97.3 million) and achieving an average price of US$1 745 per carat (H2 2021: US$1 783 per carat),” Gem Diamonds said in its report.

“The highest price achieved in the period was US$66 059 per carat for an 8, 41 carat pink diamond.

“Fifteen diamonds were sold for more than US$1 million each, generating revenue of US$25, 8 million during the period.

Three diamonds greater than 100 carats (244.34, 127.58 and 124.65 carats) were recovered during the period, which were sold in the first tender after period end for US$13, 9 million.”

The company said it had ended the period with US$24, 2 million cash in hand.

“The group had undrawn and available facilities of US$69, 9 million at period end. The 2021 dividend of 2, 7 US cents per share (US$3.8 million) proposed by the board in March 2022 was approved at the annual general meeting on 8 June 2022 and has been paid.”

Gem Diamonds CEO, Clifford Elphick, said: “We continue to see a firm diamond market for the high quality Letšeng diamonds in 2022”.

“We are managing the economic impact of global events which are contributing significantly to the slowing down of global economic growth and which are materially impacting energy and commodity prices and disrupting supply chains worldwide.

“The sanctions imposed on the Russian diamond producer Alrosa have exacerbated a shortage of rough diamonds in the market, supporting continued strong demand and robust prices for Letšeng’s high-quality rough diamonds,” Mr Elphick said.


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