Gem increases production, but lower prices bite

1st February 2024 By: Creamer Media Reporter

Gem increases production, but lower prices bite

London-listed Gem Diamonds recovered 109 656 ct of diamonds from its Letšeng mine, in Lesotho, for 2023 – an increase on the 106 704 ct recovered in 2022.

In a trading update on the company's performance for the quarter and year ended December 31, 2023, Gem says all operational and financial metrics achieved for the year were within or better than revised guidance.

It notes, however, that the global rough diamond market continued to experience downward pressure in the fourth quarter of the year, negatively impacting on the average dollar per carat and revenue achieved.

Gem recovered 32 142 ct of diamonds in the fourth quarter of the year – a 16% increase on the 26 913 ct recovered in the third quarter of the year.

Carats sold also increased to 28 402 ct in the fourth quarter, compared with 23 955 ct in the third quarter, but full-year sales decreased to 104 520 ct, compared with the 107 498 ct sold in 2022.

The average price per carat for the fourth quarter was $1 281, compared with $1 310 in the third quarter. For the full-year, the average price decreased to $1 334/ct, from $1 755/ct in 2022.

The highest price achieved in the fourth quarter was $33 745/ct for a 117.09 ct white diamond, which sold for $4-million.

Further, six diamonds sold for more than $1-million each, generating revenue of $13.8-million for the fourth quarter.

Gem has set its guidance for diamond recoveries for this year at between 104 000 ct and 107 000 ct and for sales at between 102 000 ct and 105 000 ct.