Gem Diamonds’ revenue increased 10% to $152.8 million in 2024 compared to $139.4 million in 2023, mainly due to a 5% increase in carats sold off 109 967 carats against 104 520 a year earlier.
It said diamonds sold from its Letšeng mine in Lesotho achieved an average price of $1,390 per carat last year despite the persistent downward pressure on rough and polished diamond prices, compared to $1,334 per carat in 2023.
The 4% increase in the average price per carat achieved can be attributed to the improved quality of recoveries and the increased number of larger than 100-carat diamonds sold, as prices, on a like-for-like basis, decreased during the year.
Gem Diamonds said underlying EBITDA increased by 95% to $29.7 million from $15.2 million in 2023 mainly due to the increase in revenue during the period under consideration.
The group reported a profit attributable to shareholders for the year of $2.9 million, equating to a basic profit per share of 2.1 US cents on a weighted average number of shares in issue of 139.7 million.
It also ended the year with a cash balance of $12.9 million and drawn-down facilities of $20.2 million, resulting in a net debt position of $7.3 million and available undrawn facilities of $69 million, compared to the net debt position of $21.3 million at the end of 2023.
The improvement in net debt of $14.0 million was attributed to the group's performance and resilience despite the ongoing challenges in the diamond market.
Meanwhile, Gem Diamonds’ output fell 4% to 105, 012 carats compared to 109, 656 carats in 2023, mainly due to a lower contribution from the higher-grade satellite pipe during the year.
Company chief executive Clifford Elphick said they reduced their waste investment by 39% compared to 2023, with a total of 3.4 million tonnes.
Gem Diamonds recovered 13 stones greater than 100 carats during the year, and exceptional sales included an 11-carat pink diamond that was sold for $45 537 per carat, a 63-carat Type IIa white diamond that was sold for $41 007 per carat, and a 113 carat Type IIa white diamond that was sold for $39 345 per carat.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
