29th Jul 2014 10:12
LONDON (Alliance News) - Gem Diamonds Ltd Tuesday said its Let?eng mine in Lesotho has provided strong production and revenues in its first-half, putting the company on track to pay out a first dividend at the end of the 2014 financial year.
The diamond producer said the Let?eng mine saw an 80% increase in revenues to USD147.8 million for the six months ended June 30 compared to the previous year.
The company said it saw a 29% increase in carats recovered to 54,678 carats and its sales volumes increased 14% to 53,799 carats, which were sold in the first five tenders of 2014.
Gem Diamonds said it sold 37 rough diamonds in values above USD1.0 million each and it saw a 58% increase in the average values per carat to USD2,747 at the five tenders.
The company added that three exceptional quality diamonds over 100 carats provided the company with USD21.0 million during the period.
Regarding its Ghaghoo mine in Botswana, Gem Diamonds said the processing plant for the site is being commissioned and 2,400 carats have been recovered by the end of June.
The company said the development of three production tunnels on the first level at Ghaghoo at underway and its planned build-up to planned production levels by the end of 2014 are on track.
Gem Diamonds said that as a result of the strong figures, it is on course to deliver its first dividend to shareholders at the end of the financial year, as first proposed in March.
The company said it closed the period with a cash position of USD114 million.
Gem Diamonds shares were trading 6.6% higher at 206.75 pence on Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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