LSE-listed diamond producer Gem Diamonds sold 28 461 ct of diamonds during the quarter ended March 31, up from 24 790 ct sold in the quarter ended December 31.

It generated revenue of $52.1-million for the quarter, compared with the $50-million generated in the prior quarter, with the average price having decreased to $1 831/ct, down from $2 018/ct in the December quarter.

Despite the lower diamond price, Gem CEO Clifford Elphick on April 21 said the company remained confident about the outlook for diamond prices, particularly for its Letšeng mine, in Lesotho, which produces large, high-value diamonds.

“Prices achieved on a like-for-like basis continued the largely upward trend from 2021,” he said.

The highest price achieved during the quarter was $66 059/ct for an 8.41 ct pink diamond. The highest price achieved during the same period for a white diamond was $53 834/ct for a Type IIa white diamond.

Gem reported that nine diamonds had been sold for more than $1-million each, generating revenue of $16.2-million during the quarter.

PRODUCTION

Carat production for the first quarter, at 28 461 ct, was down from the 33 069 ct produced in the fourth quarter of last year.

The lower production was attributed, in part, to a 22% quarter-on-quarter reduction in waste tonnes mined during the quarter under review.  

However, Gem said this was in line with the 2022 guidance.

“The waste mining requirements [are in line with] the long-term mine plan and do not compromise the future availability of ore,” the company said.

The Letšeng processing plants treated 1.35-million tonnes of ore during the quarter under review, 47% of which was sourced from the satellite pipe and 53% from the main pipe.

FINANCIAL

Gem ended the quarter with $29.5-million of cash on hand, while its drawn-down facilities amounted to $9.3-million, resulting in a net cash position of $20.2-million.

Gem also had undrawn and available facilities of $79.2-million at the end of the period. During the quarter, Letšeng paid a dividend of $13.4-million, which resulted in a net cash inflow of $8.9-million and a cash outflow of $500 000.