Gem Diamonds' revenues dip 11% in first half of the year

Gem Diamonds noted a rise in prices of rough diamonds at the end of its first half period ending June 30, 2010. Prices of rough diamonds from Letšeng mine rose 32 percent (y-o-y), valuing an average of $1,728 per carat. Fancy yellow diamonds from Ellendale operations, valued an average of $2,588 per carat for those that were sold to Tiffany & Co., while the other production valued an average $144 per carat. The fancy yellow diamond prices rose 3 percent (y-o-y) and other production by 182 percent (y-o-y).

The company’s revenues in the period dipped 11 percent to $103.9 million, profits declined 9 percent to $3 million and cost of sales dropped 4 percent to $69.9 million.

The company ended the six month period with no debt and $108 million in cash. Group diamond inventory from continuing operations at the cost of production at the end of June was $16.3 million.