Gem Diamonds saw sales of rough from its Letšeng mine in Lesotho decline in the first half as the average price fell and demand slowed.
Rough sales for the six months to 30 June were down 28% year-on-year to $71.6 million, while sales volumes fell 9% to 52,163 carats. The average price fell 21% to $1,373 per carat, the miner said on Tuesday.
The company sold a total of 12 diamonds for more than $1 million each, generating revenue of $21 million, it said. The highest price achieved was $282,889 per carat for a 6.63 carat pink diamond, the third highest price per carat for a Letšeng rough diamond. Meanwhile, the highest price for a white diamond was $34,441 per carat for a 58.07 carat Type IIa rough.
“The global rough diamond market experienced a downturn in 2023,” the company said. “A reduction in the number of large, high-value diamonds recovered, combined with market pressures, has negatively impacted the average dollar per carat and revenue achieved during the period.”
Production from the site totalled 50,601 carats, a decrease of 8% compared to the first six months of 2022. Gem Diamonds recovered two rough stones in excess of 100 carats. It sold one during the period and will sell the other in the third quarter.
Gem Diamonds has reduced its full year guidance for the total tonnes of ore it plans to process. However, it has maintained its guidance for production and sales volumes due to the recovery of higher grade ore. Grade improved by 12% year-on-year in the first half.
