Gem Diamonds reports solid quarter for operations, sales

23rd Oct 2024 08:31

(Sharecast News) - Gem Diamonds reported a solid third quarter operational and sales performance on Wednesday, achieving higher sales volumes and revenue compared to the prior quarter.

The London-listed firm said it sold 26,617 carats in the three month period, generating revenue of $42.7m, up from $34.8m in the second quarter.

It said the average price per carat also improved, rising to $1,603 from $1,424 in the prior three months.

Notably, Gem Diamonds achieved its highest price of the period, $45,537 per carat, for a 10.98 carat pink diamond.

Additionally, six diamonds sold for over $1m each, contributing a combined $22.6m to the quarter's total revenue.

The company said it recovered five diamonds exceeding 100 carats during the period, bringing the year-to-date total of such recoveries to 13.

Four of the large diamonds were sold during the third quarter.

Operationally, Gem Diamonds' Letšeng mine maintained stable production, recovering 24,678 carats in the third quarter, slightly down from 25,366 carats in the second quarter.

Waste tonnes stripped decreased to 1.22 million tonnes from 1.47 million tonnes, while ore tonnes treated stood at 1.19 million tonnes, broadly in line with second quarter figures.

The recovery grade marginally increased to 2.08 carats per hundred tonnes, from 2.06 carats in the second quarter.

Gem Diamonds said all key operational and financial metrics for the period remained within its revised 2024 guidance.

At 0824 BST, shares in Gem Diamonds were up 2.8% at 12.85p.

Reporting by Josh White for Sharecast.com.