18th Mar 2014 11:29
LONDON (Alliance News) - Gem Diamonds Ltd Tuesday said its pretax profit increased in its full-year as revenues improved on higher carat pricing during the period.
The high-value diamond producer said its pretax profit increased 15% to USD58.9 million from USD51.0 million the previous year as revenues increased 5.3% to USD212.8 million from USD202.1 million in 2012.
The company said revenue increased despite selling 9.6% less carats at 97,294 carats during the period as the average price per carat increased to USD2,043 from USD1,932 the previous year.
Gem Diamonds said it produced 17% less carats during the period at 95,053 carats rather than 114,350 carats in 2012 primarily due to mining lower-grade main pipe ore during the first three quarters of the year. Looking ahead, the company said it plans to introduce technology to extract better value from its assets.
The company said it has seen improved prices in the fourth quarter 2013 continuing into the first quarter 2014 and noted in March, that the sale of two diamonds of over 160 carats has made a total of USD13.5 million for the company.
Gem Diamonds added that its focus for 2014 is to execute the remaining capital spend for its Ghaghoo site in Botswana within budget towards commercial production in the second-half, to pursue cost control and operational efficiencies and to deliver value to shareholders.
Gem Diamonds shares were up 0.1% to 173.75 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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