Gem Diamonds sales declined in the third quarter as prices fell amid weak market conditions and a decline in the proportion of large stones sold.
Sales from the company’s Letšeng mine in Lesotho slumped 45% year-on-year to $31.4 million in the three months to 30 September, the company said on Wednesday. Sales volumes fell 14% to 23,955 carats, while the average price fell 35% to $1,310 per carat. Revenue was also down 10% on the previous quarter, with the average price down 1%.
As has been well documented, the global rough diamond market has experienced a downturn in 2023,” the miner said. “A reduction in the number of large, high-value diamonds recovered, combined with this market pressure, has negatively impacted the average dollar per carat and revenue achieved during the period.”
Gem Diamonds sold four diamonds for more than $1 million each, generating revenues of $6.1 million during the period. This compares with the sale of 10 diamonds in this range a year earlier which generated $25.1 million. The highest prices achieved in the three months from July to September were $67,853 per carat for a 5.96 carat pink diamond and $36,399 per carat for a 58.71 carat white Type IIa rough.
Production for the period increased by 8% to 26,913 carats, with the company recovering one diamond in excess of 100 carats. It plans to sell this stone in the fourth quarter, it said.
Revenue fell 34% to $103m for the first nine months of 2023. The average price fell 26% to $1,353 per carat and sales volumes fell 10% to 76,118 carats.
