LSE-listed diamond miner Gem Diamonds’ revenue has increased from $69.5-million in the first half of 2020, to $104.5-million for the six months to June 30 this year, resulting in the miner increasing its cash on hand from $24.9-million in the prior comparable period to $33.9-million for the period under review.
The group increased its underlying earnings before interest, taxes, depreciation and amortisation from $11.3-million to $34.7-million.
It ended the six months with unused finance facilities of $61-million.
Gem Diamonds also incurred a loss from discontinued operations at Ghaghoo of $1.3-million, down from the $1.9-million of the first half of 2020.
In the six months under review, the miner’s business transformation programme has delivered a cumulative $95.4-million, net of fees and costs.
Further, it achieved an average price of $1 886/ct, up from the $1 707/ct of the period prior.
“We are pleased . . . to see a continued strong demand for Letšeng's high-quality diamonds and the positive impact on prices achieved,” says CEO Clifford Elphick.
In addition, three diamonds larger than 100 ct were recovered during the first six months of this year, down from the seven mined in the corresponding period in 2020.
Nonetheless, Gem recovered a total of 58 831 ct during the first half, up from the 43 275 ct mined in the first half of 2020.
The miner had zero fatalities but experienced four lost-time injuries during the period.
As for its response to the Covid-19 pandemic, Gem continues to stringently apply its range of Covid-19 protocols, health and safety measures and other precautions to protect its employees and contractors at its operations.
The Letšeng mine in Lesotho partnered with the government of Lesotho to increase preparedness for the impact of Covid-19 in project-affected communities, acquiring 20 000 doses of the Johnson & Johnson vaccine for use by the government in its national vaccine rollout programme.
The vaccine rollout for Letšeng’s employees has started, with 885 employees vaccinated to date, with the full workforce expected to be vaccinated within the next few weeks.