21st Apr 2020 17:50
(Alliance News) - Gem Diamonds Ltd said Tuesday its revenue for the first quarter was down on lower prices per carat.
In the three months to March 31, Gem expects to report revenue of USD47.3 million, down 8% compared to USD51.3 million seen in the fourth quarter of 2019.
Average price achieved per carat was down 6% to USD1,615 from USD1,713 in the previous quarter.
Gem sold 11 diamonds for more than USD1.0 million in the first quarter of 2020, generating USD20.7 million.
The company sold 29,298 carats in the period, down 2% from 29,945 in the last period of 2019.
Gem ended the quarter with USD21.7 million in cash on hand, with net debt of USD21.5 million. Gem has available additional facilities of USD33.6 million.
Chief Executive Clifford Elphick said: "Letseng's mining progressed well during the period and we are confident that the mine will be able to rapidly ramp-up to full production once the lock-down period is lifted and it is safe for all our employees and contractors to return to site.
"The positive results of the flexible tender sales process demonstrated the continued demand for Letseng's high quality diamonds with the average price of USD1,615 achieved during the period, notwithstanding the extremely uncertain and challenging global conditions.''
Since March 25, the company's mine in Lesotho has been suspended due to a general lockdown in the country. The lockdown is expected to end Tuesday, April 21.
Shares in Gem Diamonds closed 2.0% higher in London on Tuesday at 35.50 pence each.
By Paul McGowan; [email protected]
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