Gem Diamonds boosts H1 core earnings

Gem Diamonds, which owns the Letšeng mine in Lesotho, has recorded underlying earnings before interest, taxes, depreciation, and amortization (EBITDA) of $34.7 million in the first half of 2021 compared to $11.3 million, a year earlier.
It said the profit attributable to shareholders from continuing operations rose to $10.6 million from the previous year’s $200 000, equating to earnings per share from continuing operations of 7.6 US cents on a weighted average number of shares in issue of 139.8 million.
Having included the loss of $1.3 million from Ghaghoo, which it however recently sold, the group's attributable profit was $9.3 million, resulting in earnings per share after discontinued operations of 6.6 US cents from a loss of 1.3 US cents per share in 2020.
Gem Diamonds said its first-half revenue rose to $104.5 million from the previous year’s $69.5 million mainly driven by increased sales volumes and higher prices per carat achieved compared to H1 2020, which was impacted by COVID-19. 
The higher sales volumes were a direct result of the increased production since being able to operate at normal capacity during the period. 
"We are pleased with the results achieved during the period and to see a continued strong demand for Letšeng's high-quality diamonds and the positive impact on prices achieved,” said Gem Diamonds chief executive Clifford Elphick.
The recovery of the diamond market had a positive impact on the prices achieved for Letšeng's rough diamonds.
The group’s average price achieved during the period was $1 886 per carat from the previous year’s $1 707 per carat.

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