Large Stones Boost Sales at Gem Diamonds

RAPAPORT... Revenue at Gem Diamonds rose 20% year on year to $56.6 million in the third quarter, reflecting solid pricing and an increase in sales of high-value stones."Tenders in Antwerp, together with a Dubai tender viewing in September 2022, were well attended and contributed positively to the prices achieved during the period," the operator of the lucrative Let??eng mine in Lesotho said Wednesday.The average selling price rose 28% year on year to $2,028 per carat, outweighing a 6% decline in sales volume to 27,913 carats. The company sold 10 diamonds for more than $1 million each, generating revenues of $25.1 million, compared with six stones in that range for a total of $12.2 million a year earlier."It is pleasing to see that the average price achieved for the Let??eng tenders for [the quarter] exceeded $2,000 per carat, notwithstanding the current downturn in the global economy," said Gem Diamonds CEO Clifford Elphick.Production grew 7% to 25,018 carats for the period. However, the company has lowered its output plan for the full year because of a shutdown related to Lesotho's October general election as well as a crusher breakdown and a power disruption. The miner expects to recover 104,000 carats for the year, down from an earlier forecast of 112,000 to 116,000 carats, and anticipates sales of 105,000 carats, versus a previous outlook of 110,000 to 114,000 carats.In the first nine months of 2022, revenue increased 3% year on year to $156.2 million. The average price also gained 3% to $1,838 per carat, while sales volume was flat at 84,989 carats.Image: The Let??eng mine in Lesotho. (Gem Diamonds)