London-listed Gem Diamonds saw continuing recovery of the diamond market in 2021, as evidenced by the robust prices achieved for its large, high-value diamonds and smaller diamonds alike.

The company ended the 2021 financial year on solid financial footing thanks to positive cash flows.

Gem, which operates the Letšeng mine, in Lesotho, generated an attributable profit from continuing operations of $18.5-million for the year under review, compared with attributable profit of $16.9-million posted for 2020.

An ordinary dividend of $0.027 apiece was declared, while earnings a share from continuing operations amounted to $0.132.

Underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) of $57.4-million reported in 2021 compares with underlying Ebitda of $53.2-million posted in 2020.

Gem recovered 115 335 ct in the reporting year, compared with 100 780 ct recovered in the prior year, albeit at a lower average value of $1 835/ct, compared with an average value of $1 908/ct achieved in 2020.

A notable recovery in the year was the 367 ct Letšeng Princess, which sold for $9.6-million in June 2021.

CEO Clifford Elphick comments that Gem delivered positive operational and financial results in the year under review, notwithstanding the continued challenges brought about by the Covid-19 pandemic on the availability of skills, equipment, spares and other aspects of the supply chain.

Gem is nearing a 100% workforce vaccination rate and donated 20 000 vaccines to the Lesotho government.

The company also sponsored a new 4x4 ambulance capable of reaching remote communities.

The group has continued with its climate change journey and believes its science-based approach will stand it in good stead over the coming years in managing physical and transition risks.

“We are also continuing to explore the opportunities that climate change might bring to our operations,” Elphick concludes.