Gem Diamonds Back to Profit in First Half

RAPAPORT... Gem Diamonds returned to the black in the first half of 2021 amid strong sales and a higher average price.The company reported a profit of $9.3 million for the six months ending June 30, compared with a loss of $1.7 million a year earlier, when Covid-19 temporarily shut down its Let??eng mine in Lesotho and restricted tenders. Profit also increased 121% over the first half of 2019, Gem Diamonds said Thursday. Revenue from rough diamonds rose 50% year on year to $104.5 million. Sales volume jumped 27% to 55,123 carats, with the average price up 10% to $1,886 per carat. The miner also sold its Ghaghoo deposit in Botswana - which had been on care and maintenance - during the period. Production at Let??eng climbed 36% to 58,831 carats, because the miner was able to operate at full capacity. Output rose 4% over pre-pandemic levels due to a higher proportion of rough mined from the site's satellite pipe, which contains higher-grade ore.The company has implemented a cost-cutting program, which has saved $95.4 million to date. It predicts it will reach its planned savings of $100 million by the end of 2021.In September, Gem Diamonds plans to hold a tender of Let??eng rough in Dubai for the first time. It has previously sold rough only in Lesotho and Belgium.Image: The Let??eng mine. (Gem Diamonds)