Gem Diamonds recovers higher prices!

Aug 29, 2023

Gem Diamonds Limited provides the following Trading Update detailing the Group’s operational and sales performance from 1 January 2023 to 30 June 2023 (H1 2023). According to the report, the highest price achieved during the Period was US$282 889 per carat for a 6.63 carat pink diamond, the third highest dollar per carat achieved for a Letšeng rough diamond.

The highest price achieved during the Period for a white diamond was US$34 441 per carat for a 58.07 carat Type IIa diamond. 2 diamonds sold for more than US$1.0 million each, generating revenue of US$21.0 million during the Period. Two diamonds greater than 100 carats were recovered during the Period, one of which was sold in the Period and the other will be sold in Q3 2023.

In the context of the Letšeng mine’s full year guidance, during the Period increasing grid electricity interruptions caused a reduction in volumes of ore processed. In addition, higher than expected internal basalt dilution in certain domains of ore that was treated impacted throughput.

To mitigate the impact of internal basalt dilution, improve plant stability and large diamond recoveries, in the latter part of Q2 2023, an operational decision to open crusher gaps and to slow throughput in the processing plant was implemented. As a result, full year guidance for tonnes treated has been revised down to 4.9m – 5.1m tonnes. Initial results of these actions on plant stability and recoveries have been positive.

Carats recovered and sold remain within original guidance due to improved grade performance. The lower tonnes treated has however impacted unit costs. Direct cash costs per tonne treated have been revised to LSL285 – 305 per tonne treated and operating costs have been revised to LSL380 – 395 per tonne treated.

Expressing their view about diamond market, Gem Diamonds said, the global rough diamond market has experienced a downturn in 2023. A decrease in the number of large, high-value diamonds recovered, combined with market pressure has negatively impacted the average dollar per carat and revenue achieved during the Period.

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