Gem Diamonds reports 41% revenue increase as precious stones prices rise

London-listed Gem Diamonds increased its revenue by 41% in the final quarter of 2019 following a rise in prices for precious stones, including high quality diamonds.

The mining firm’s revenue increased from US$36.3 million in the previous quarter to $51.3 million in Q4, with a 21% rise in diamond prices to $713 per carat cited as the prime driver of revenue growth.

However, Gem sold 29,945 carats worth of the gems, a 17% increase on the previous quarter. The Lesotho-focused firm also sold seven diamonds for more than $1 million each in the period, generating a total revenue of $15.6 million.

At the beginning of February, Gem recovered three 183, 89 and 70 carat diamonds from its flagship Letšeng mine in Lesotho, which will be sold in March. Gem has now recovered 100 diamonds of more than 100 carats from Letšeng.

Chief executive Clifford Elphick said: “Letšeng delivered solid operational results. Carats sold are up 17% on the prior quarter. There was an increase in volumes treated for the year and a significant reduction in the waste profile.

“This, together with the Business Transformation programme delivering its targeted gains and continued emphasis on cost controls, positions the company well for the anticipated upturn in the market which appears to have begun.”