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Gem Diamonds sells fewer diamonds amid diamond market downturn

22nd Aug 2023 11:15

(Alliance News) - Gem Diamonds Ltd on Tuesday said it sold fewer diamonds in the first half of 2023 amid a downturn, with fewer large, high-value diamonds recovered.

The diamond producer with diamond mining operations in Lesotho and Botswana said in the six months to June 30, it sold diamonds for more than USD21.0 million total, down 19% from USD25.8 million a year prior. The amount of diamonds sold decreased to 12 from 15.

"The global rough diamond market has experienced a downturn in 2023. A decrease in the number of large, high-value diamonds recovered, combined with market pressure has negatively impacted the average dollar per carat and revenue achieved during the period," the company said.

This is a significant change from a year ago, when the company touted an optimistic outlook and a "firm diamond market".

Gem Diamonds sold carats worth for a total of USD71.6 million, down 19% from USD88.9 million a year ago.

The company added: "Carats recovered and sold remain within original guidance due to improved grade performance. The lower tonnes treated has however impacted unit costs. Direct cash costs per tonne treated have been revised to LSL285 - 305 [USD15.16 - USD16.23] per tonne treated and operating costs have been revised to LSL380 - 395 per tonne treated."

Gem Diamonds shares were 1.5% higher at 16.60 pence each on Tuesday morning in London.

By Tom Budszus, Alliance News reporter

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