Gem Diamonds, a UK-based mining company, reported a 19% decrease in revenue generated from rough diamond sales at its Letseng mine located in Lesotho during the first half of this year.
The decline in revenue is attributed to the ongoing industry downturn, a reduction in the retrieval of high-value diamonds, and interruptions in ore processing caused by power outages.
Letseng, renowned as the world’s highest-dollar-per-carat kimberlite diamond mine, witnessed a notable 22% drop in average prices in the six-month period ending on June 30th. This decline is evident as prices decreased from $1,765 to $1,373.
Gem Diamonds highlighted the sale of a dozen diamonds valued at over $1 million each during the first half of 2023, amounting to a cumulative total of $21 million.
Among the notable sales, a 6.63-carat pink diamond fetched the highest price of $282,889 per carat, while a 58.07-carat Type IIa white diamond achieved the highest white diamond price at $34,441 per carat.
Despite the challenging market conditions, the company managed to maintain carat recovery and sales in line with initial projections, attributed to improved grade performance. However, operating and treatment costs experienced an increase.
The company addressed the impact of grid electricity interruptions during the period, leading to a reduction in ore processing volumes. This information was conveyed through a comprehensive trading update provided by Gem Diamonds.
