Gem Diamonds’ Letšeng declares dividend of $13mln in Q4

Gem Diamonds’ 70%-owned Letšeng mine in Lesotho has declared a dividend of $13 million resulting in a net cash flow of $8.6 million to the group.
This also resulted in a cash outflow from Gem Diamonds for withholding taxes of $500 000 as well as a payment of the government’s share of a dividend of $3.9 million.
The group said it strengthened its net cash position to $20.9 million in the fourth quarter compared to $11.7 million net debt, the previous quarter.
It sold 24 790 carats during the period under review against 29 783 carats in the third quarter, generating revenue of $50.0 million and achieving an average price of $2 018 per carat.
Gem Diamonds sold 109 697 carats in 2021, an increase of 11% compared to 99 172 carats in 2020, achieving an average price of $1 835 per carat.
The highest price achieved in the period was $40 130 per carat for a 101.16-carat white diamond, it said.
Five diamonds sold for more than $1.0 million each, generating revenue of $16.3 million during the period, bringing the total number of diamonds sold for greater than $1.0 million to 21 for the year to date, generating revenue of $62.5 million.

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