Gem Diamonds has achieved a significant milestone with the extraction of a remarkable 295-carat rough diamond from its Letšeng mine in Lesotho. This notable discovery, the first rough diamond exceeding 100 carats found this year, is poised to make a substantial impact on the mining company’s overall performance.
The Letšeng mine, renowned for producing high-quality rough diamonds, has witnessed a recent decline in the recovery of stones surpassing 100 carats. In 2022 and the preceding year, Gem Diamonds retrieved only four diamonds falling into this category, a notable drop from six in 2021 and 16 in 2020. However, the current discovery signals a promising start for Gem Diamonds in the early months of the year.
Gem Diamonds garnered attention in 2023 for an impressive achievement – the retrieval of a noteworthy 163.91-carat yellow diamond in July. Despite the diminishing number of larger stones in recent years, the company continues to showcase its commitment to delivering exceptional and unique gems.
The decrease in the production of larger stones has had a tangible impact on Gem Diamonds’ revenue. In the third quarter ending September 30, 2023, sales experienced a 45% year-on-year decline, amounting to $31.4 million. This decline was accompanied by a 35% decrease in the average price per carat, which now stands at $1,310. The company is slated to unveil its full-year results in March, providing a comprehensive overview of its financial performance.
Gem Diamonds remains a key player in the diamond mining industry, and the recent discovery of the 295-carat rough diamond underscores the ongoing potential of the Letšeng mine. As the company anticipates revealing its full-year results, industry stakeholders will closely watch for insights into Gem Diamonds’ strategic initiatives and the overall outlook for the diamond market.
