Gem Diamonds, the mining company with operations centered around its Letšeng mine in Lesotho, faced a downturn in the first half of the year as a result of a decline in the average diamond price and a subdued demand environment.
Rough diamond sales for the six months concluding on June 30 exhibited a 28% year-on-year decline, amounting to $71.6 million. The sales volume also experienced a reduction of 9%, accounting for 52,163 carats. Concurrently, the average price witnessed a significant decline of 21%, registering at $1,373 per carat, as reported by the company on Tuesday.
Within this context, Gem Diamonds managed to achieve sales of 12 individual diamonds, each exceeding the $1 million mark, contributing to a total revenue of $21 million. Among these sales, a pink diamond weighing 6.63 carats commanded the highest price of $282,889 per carat, marking the third-highest per-carat value attained for a rough diamond from Letšeng. In the category of white diamonds, a 58.07-carat type IIa rough commanded the highest price of $34,441 per carat.
Gem Diamonds acknowledged the challenging market dynamics that have characterized 2023, particularly within the global rough-diamond sector. The company attributed this challenging environment to a decrease in the recovery of large, high-value diamonds, coupled with market pressures that ultimately impacted both the average dollar per carat and revenue generated during the period.
The mining site yielded a total output of 50,601 carats, which reflects an 8% decline in comparison to the corresponding period in 2022. Notably, Gem Diamonds successfully unearthed two rough stones exceeding 100 carats. While one of these stones was sold during the period, the other is scheduled for sale in the upcoming third quarter. These developments highlight the complexities and nuances that mining companies navigate in the evolving diamond market landscape.
