Gem Diamonds has updated its production and sales forecasts for the year. The company now expects its Letšeng mine in Lesotho to produce between 98,000 and 101,000 carats of diamonds. Sales volume is projected to reach between 100,000 and 103,000 carats. This forecast is driven by a significant increase in the number of large rough diamonds, which has quadrupled compared to last year.
Despite a challenging diamond market that has impacted prices, the company noted that the larger diamonds and increased recoveries have helped mitigate this effect. For the first half of the year, Gem Diamonds reported a profit of $5.5 million, up from $1.5 million in the same period last year. Revenue grew by 9% to $78 million, due to a 9% rise in sales volume to 56,944 carats, while the average price remained steady at $1,366 per carat. Output increased by 10% year-over-year to 55,873 carats, with a 7% improvement in the recovered grade.
The highest price for a white rough diamond during the first half was $41,007 per carat. Net debt decreased to $8.4 million from $21.3 million as of December 31. Since the end of the reporting period, the company has recovered two more diamonds over 100 carats, including a 129.71-carat white type II diamond found on August 23.
