Large Stones Prove Profitable for Gem Diamonds

RAPAPORT... Gem Diamonds swung to a profit in the first half of theyear, boosted by the sale of large, high-quality stones from its Let??engmine in Lesotho. Profit was $24.2 million for the period ending June 30,versus a loss of $2.9 million last year, the company reported Wednesday. Sales rose 81% year on year to $167.7 million for the sixmonths, from 61,596 carats, with the average price at Let??engup 54% to $2,742 per carat. The company sold 25 stones for more than $1 millioneach, with the largest of those, the 910-carat Lesotho Legend, fetching $40million. "Let??eng's improved recoveries combined with the discoveryand subsequent sale of the Lesotho Legend has generated a strong set of results,"said CEO Clifford Elphick. "Let??eng produced a record number of diamondsgreater than 100 carats for any six-month period in the mine's history." Gem Diamonds recovered 10 diamonds larger than 100 carats duringthe first six months at Let??eng, and last month unearthed anothertwo, making this a record year for such finds. The company also owns the Ghaghoo mine in Botswana, which itis in the process of selling.Image: Gem Diamonds