Gem Diamonds registers strong Letšeng H1 sales despite challenges

Gem Diamonds raked in $74 million from 43 384 carats recovered at its Letšeng in Lesotho during the first half of the year compared to $87.6 million realised from 55 578 carats sold in the previous half. 
The diamonds were sold at an average price of $1,707 per carat, up 8% from $1, 576 per carat during the second half of 2019.
"The positive sales results during the period demonstrate the continued demand for Letšeng's high quality diamonds with an average price of $1 707 per carat, despite the challenging global conditions,” said company chief executive Clifford Elphick.
“This, together with the pro-active cost control and cash preservation measures implemented across the group, has resulted in positive cash flow generation during the period.”
Gem Diamonds sold 16 diamonds for more than $1 million each, generating revenue of $29.4 million during the first half of the year compared to 12 diamonds sold for more than $1.0 million each, generating $26.6 million of revenue, the previous half.
Meanwhile, the company produced 43 275 carats during the period under review, which was 24% weaker compared to 57 306 carats recovered during the second half of 2019. 
Letšeng returned to its standard treatment capacity during the second quarter of the year after temporarily suspending operations for 30 days in line with the Lesotho government's regulations to curb the spread of the Covid-19 virus.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished