LSE-listed Gem Diamonds on Wednesday posted a significant surge in earnings as it delivered record diamond recoveries for the year ended December 31, 2018.

The diamond miner reported a profit for the year of $46.6-million, compared with the $20.8-million achieved, before exceptional items, in 2017, with attributable profit reaching $26-million during the year under review.

Underlying earnings before interest, taxes, depreciation and amortisation increased from $48.6-million in 2017 to $82.3-million in 2018, while earnings a share surged from 6.56c to 18.8c in the same period.

"Gem achieved a good set of results, characterised by the recovery of 15 diamonds greater than 100 ct, a record for a single calendar year. Production in 2018 also included the highest recovery of diamonds greater than 20 ct, with 80% of revenue primarily generated by diamonds greater than 10 ct,” said CEO Clifford Elphick.

A total of 125 111 ct were sold during the 2018 financial year, generating revenue of $267.3-million.

Gem Diamonds recovered 126 875 ct from the Letšeng diamond mine, in Lesotho, with an average value of $2 131/ct achieved, an increase of 10% on the prior year.

The most notable recovery for the year was the 910 ct Lesotho Legend, which sold for $40-million, or $43 956/ct.

“This diamond is the largest recovered from Letšeng to date and is the fifth largest gem-quality diamond ever recovered. The recovery of a diamond of this quality and size affirms the world-class calibre of the Letšeng mine. While this diamond was an exceptional find, it was one of several notable recoveries,” Elphick added.

These included a 4.06 ct pink diamond, which achieved the highest dollar per carat for the year of $64 067, and a 138.2 ct white diamond, which sold for $8.4-million, or $60 428/ct, making it the highest dollar per carat price achieved during the year for a Letšeng white rough diamond.