Gem Diamonds, which owns a 70% stake in the Letšeng mine in Lesotho, reports that a decline in the number of large, high-value diamonds recovered, coupled with market pressure and power interruptions, has hurt the company's average dollar per carat and revenue in the first half of 2023.
The company's revenue decreased to $71.8 million during the first half of the year from $100.0 million in the prior year.
Its underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the period was $8.4 million, compared to $20.9 million for the same period last year.
“The downturn in the rough diamond market, together with increased grid electricity interruptions, which increased operating costs, negatively impacted our financial results for the Period,” said Gem Diamonds chief executive Clifford Elphick.
“Our focus remains on stabilising our plants to improve large diamond recoveries and to critically review all operational and capital expenditure.”
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
