JOHANNESBURG (miningweekly.com) – LSE-listed Gem Diamonds on Tuesday reported a $25,4-million profit for year ended December 31, 2009, compared with the $552,2-million loss recorded in the 2008 financial year.

The diamond miner had generated revenues of $244,4-million during the 2009 financial year, mainly from the sale of rough diamonds recovered at its Letšeng mine in Lesotho and its Ellendale operation in Australia.

Gem had produced 289 703 ct during the year, exceeding its targeted output of 275 265 ct.

It had also sold 414 049 ct during the year, compared with its target of 392 526 ct.

CEO Clifford Elphick noted in a statement that 2009 had been challenging year for many in the diamond mining industry, but said that Gem had been able to weather the worst of the economic downturn.

He added that the medium- to long-term shortage in diamond supply, as a result of falling production from existing mines, a lack of new mines coming on stream and growth in the Indian and Chinese markets, was positively impacting on the diamond market.

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