Gem Diamonds Limited reporting its Full Year Results for the year ending December 31, 2019 said that the Company’s revenue amounted to US$182.0 million. This represented a drop of over 31% compared to revenue for 2018, which stood at US$ US$267.3 million.

Underlying EBITDA from continuing operations for the period were US$41.0 million as compared to US$87.7 million in the previous year.

Profit for the year from continuing operations saw a sharp dip to US$15.0 million from US$52.4 million recorded in 2018. Attributable profit from continuing operations too declined; to US$7.1 million as compared to US$31.7 million in 2018.

The Company declared earnings per share from continuing operations of 5.1 US cents as against 22.9 US cents in 2018.

As at December 31, 2019 an amount of US$11.4 million represented cash on hand   attributable to Gem Diamonds compared to US$9.2 million in the previous year

At its Letšeng mine in Lesotho, the Company recovered 113,974 carats of diamonds in 2019, as compared to 126,875 carats recovered in 2018. The average value realised in 2019 was US$1,637 per carat compared to US$2,131 per carat  in 2018.

In the year under discussion, eleven diamonds larger than 100 carats each were recovered – as against fifteen such diamonds recovered in 2018.

The highest dollar per carat was achieved for a white rough diamond during the year at US$48,255 per carat.

“The signing of the new mining lease in October 2019 secures Gem Diamonds’ mining right at Letšeng until 2039,” Gem Diamonds noted. “The new lease sees the royalty rate on diamond sales increase from 8% to 10%, shareholding in the mine remain(s) unaltered (Gem Diamonds at 70% and Government of the Kingdom of Lesotho at 30%) and an increase in the number of work permits that may be granted.”

On the technology and innovation front, Gem Diamonds stressed that with the construction of the pilot plant it has made progress “on the identification, validation and testing of technologies from various industries to complement its innovation drive of early detection and non-mechanical means of liberating diamonds”.

Clifford Elphick, Chief Executive Officer of Gem Diamonds, commented: "Gem Diamonds delivered solid operational results which together with the targeted gains of the Business Transformation programme and continued emphasis on cost controls, confirmed our status as one of the lowest-cost producers in the industry."

He noted that the total number of diamonds of greater than 100 carats recovered at the Letšeng mine now amounts to 100. “This, together with a 13.32 carat pink diamond that was recovered and sold for a Letšeng record of US$656,934 per carat, reaffirms the unique quality of the Letšeng production,” Elphick emphasised.

“The Letšeng mining lease was renewed for an effective 20-year period which creates long-term stability for Letšeng,” he pointed out. “This, together with the continued emphasis on cost controls, positions the Company well for an upturn in the market for Letšeng’s quality production which appears to have begun."