Large Stones Lift Gem Diamonds Sales

RAPAPORT... Revenue at Gem Diamonds rose in the first half of the yearas higher recoveries of large stones boosted the average selling price. Sales jumped 43% to $169.2 million by value and, by volume,climbed 8% to 61,696 carats, the miner reported Friday. Rough diamonds from thecompany's Let??eng mine in Lesotho achieved an average of $2,742 per carat,compared to $2,061 per carat in the same period a year ago. While total Let??eng production was flat at 61,596 carats, theasset yielded a record 10 rough diamonds larger than 100 carats in the firstsix months of the year. These included the 910-carat Lesotho Legend - thecompany's largest find to date - which sold for $40 million in March. Some25 stones fetched more than $1 million each during the period. "We are delighted to see the continuation in the recoveriesof large diamonds during the period," CEO Clifford Elphick said last week. "Thistrend continued into [the third quarter] with the 11th diamond greater than 100carats recovered in July, now equaling the highest number of these recoveriesin a single year. Greatly improved recoveries combined with the discovery andsubsequent sale of the Lesotho Legend has generated a strong financialperformance for the first half." The highest price per carat the company achieved for adiamond during the first half was $62,433 for a 2.26-carat pink diamond. Gem Diamonds also owns the Ghaghoo mine in Botswana, whichit is in the process of selling.