Gem Diamonds' revenues rise 49% in 2011

Gem Diamonds noted a 49 percent rise in its revenues in 2011to $67.7 million. The year closed for Gem Diamonds with attributable net profit rising more than three times to $67.7 million.

The mining company attributes these good results to be effected by the hike in rough diamond prices and the rise in production from its Letšeng mine in Lesotho.

Sales from its Letšeng mine increased 58 percent to $300.6 million for 107,700 carats. The average price of sales rose 29 percent to $2,776 per carat. The sales from the Letšeng mine were significant as it involved that of the 550 carat Letšeng Star sold into a partnership arrangement for $16.5 million. Production from the Letšeng mine rose 24 percent to 112,367 carats.

The Ellendale mine in Australia delivered a rose 15 percent rise in sales to $89.4 million, in which the average price rose 54 percent to $731 per carat. The sale highlight was the fancy yellow diamonds sold to Tiffany & Co, in which the average price rose 53 percent to $4,409 per carat. Although the mine’s production dipped 28 percent to 120,302 carats in the said year.