Gem Diamonds’ revenues slip 7.5% in H1

Gem Diamonds noted that its revenues stood at US$109.1 million for the six months ending 30 June 2016, falling 7.5 percent from US$118.0 million in H1 2015. Its underlying EBITDA stood at US$ 43.5 million or 5.6 percent lower on y-o-y basis. Attributable profit (before exceptional item) was worth US$13.4 million (US$15.4 million in H1 2015).

Also, at the company’s Letšeng mine, 57, 380 carats were recovered from 50,019 carats in H1 2015. But the average value per carat dropped to US$1 899 from US$2 264 in H1 2015. Twenty diamonds achieved a sales value of greater than US$1 million each. An exceptional Type II 160.2 carat diamond recovered. The company noted that the mine continues to perform well with steady prices being achieved for high value diamonds.

At its Ghaghoo mine, 20,876 carats were recovered from 35,283 in H1 2015. Also, total sales achieved was of US$4.8 million, at an average of US$157 per carat.

Clifford Elphick, Chief Executive of Gem Diamonds, said: “I am pleased to report an underlying EBITDA of US$43.5 million. This reflects careful cost management and capital discipline. It is also encouraging to see that the capital projects implemented at Letšeng are bearing fruit, with a notable increase in tonnes treated and carats recovered compared to prior periods.” He further noted that, “The first half of 2016 saw a decline in the number of +100 carat diamonds recovered at Letšeng compared to 2015, reflecting the areas in which mining had taken place, which impacted the US$ per carat achieved in the Period. Since the beginning of July, two exceptional diamonds of 104 carats and 85 carats have been recovered as mining moves to a different area.”