More +100-cts Stones Boost Gem's Revenue
August 29, 24
(IDEX Online) - Gem Diamonds today (29 August) announced increased half-year revenues, buoyed by its increased recovery of +100-cts stones.
Despite ongoing pressures on the global diamond market, it has increased to it full-year guidance number of carats it expects to recover and sell.
The UK-based miner reported revenue of $78m for H1 2024, an 8.6 per cent increase year-on-year and underlying EBITDA more than doubled to £19.1m.
Gem's Lestseng mine in Lesotho recovered eight +100-cts stones during the six months to 30 June - as many as it did in the whole of 2023. It has since recovered another two +100-cts stones, taking the current annual total to 10.
"The higher revenue is mainly attributed to the higher volume of overall recoveries and the recovery and sale of six diamonds greater than 100 carats during the period which offset the negative impact of lower prices," the company said in its Half Year 2024 Results.
FY 2024 guidance on carats recovered has been revised to 98 - 101 kcts and carats sold to 100 - 103 kcts.
Clifford Elphick, Gem's CEO said: "The pressure on the global diamond market persists which negatively impacted the revenue generated during the period.
"We have, however, had great success in improving our operational outputs and cost containment which mitigated the market impact on diamond prices. In line with the improved performance, we have revised our guidance for 2024."
Pic, courtesy Gem Diamonds, shows a 295-carat Type II white diamond from January, the biggest recovery this year at Letseng.