Image credit: Gem Diamonds
Gem Diamonds says it reduced its net debt position by $6.6 million in the third quarter of 2020, ending the period in a net cash position of $1.1 million.
The company had a net debt of $5.5 million in the first half of the year.
Gem said it ended the quarter with $24.5-million cash on hand, excluding $29.8 million of the September tender proceeds received after the period end.
It sold seven diamonds for more than $1 million each, generating revenue of $25.6 million during the period, bringing the total number of diamonds sold for greater than $1 million to 24 for the year to date.
The company also recorded an average price of $2, 215 per carat in the third quarter compared to $1 714 in the first half of 2020.
Gem Diamonds chief executive Clifford Elphick said the average price of $2 215 per carat demonstrates the improved demand for Letšeng's high-quality large diamond production.
"These prices achieved (on a like for like basis) are higher than those realised in the pre-Covid-19 market conditions of H2 2019," he said.
"This, together with the continued pro-active cost control and cash preservation measures implemented across the Group, has resulted in continued positive cash flow for the Group."
The company produced 29 127 carats in the third quarter, bringing the year to date output to 72, 403 carats, which is 14% weaker compared to 84 207 carats, a year earlier.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
