Image credit: Gem Diamonds
The group sold 99, 172 carats last year, which was 11% less than 111, 291 carats auctioned the previous year.
"The 11% reduction in carats sold in the year was as a result of the cessation of production during the Lesotho Government's lockdown period in Q2 2020," said Gem Diamonds.
However, the company realised $189.2 million from the diamonds sold in 2020, an increase of 4% compared to $182.1 million in 2019.
Gem Diamonds sold its stones at an average price of $1,908 per carat in 2020, a 17% jump against $1,637 per carat in 2019.
Meanwhile, the company said Letšeng declared a dividend of $27.2 million in the fourth quarter of 2020 of which $17 million was paid before the period end, resulting in a net cash flow of $11.3 million to Gem Diamonds.
This also led to a cash outflow from the group for withholding taxes of $600 000 and payment of the government of Lesotho's share of the dividend of $5.1 million.
The remaining dividend is scheduled to be paid in the first quarter of 2021.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
