Image credit: Gem Diamonds
The company’s revenue jumped 4% to 189.6 million last year compared to $182 million in 2019, while profit attributable to shareholders from continuing operations for the year was $16.9 million, equating to earnings per share from continuing operations of 12.1 US cents on a weighted average number of shares in issue of 139.3 million.
Although tender revenues initially tracked the weaker market for rough diamonds following the onset of COVID-19, there was a marked improvement in sentiment in the second half of the year.
"The operational results were characterised by strong cash flows, the achievement of all revised operational metrics and the recovery of 16 diamonds greater than 100 carats each, the highest number recovered in a single year," said Gem Diamonds chief executive Clifford Elphick.
"The stronger prices achieved in the second half of 2020, reaffirms the recovery of the diamond market and the unique quality of the Letšeng production."
With the focus on the higher-value satellite ore, Letšeng produced good high-quality large diamonds, which included 16 diamonds greater than 100 carats during the year, compared to 11 in 2019.
Production at Letšeng eased 12% to 100, 780 carats in 2020 from 113, 974 carats in 2019.
The company reduced tonnes treated due to the COVID19-related shutdown in the second quarter of 2020.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
