Gem Diamonds Ltd yesterday released its results for the six-month period ending June 30, 2019 (H1 2019), reporting a drop in both revenue and profit, even as the business transformation process the Company has set in motion yielded positive results.

The miner reported revenue of US$ 91.3 million (H1 2018: US$ 167.7 million) with an underlying EBITDA of US$ 25.3 million (H1 2018: US$ 70.7 million) which translated into an attributable profit, from continuing operations of US$ 6.6 million (H1 2018: US$ 26.8 million).

The profit also includes the care and maintenance costs of US$ 2.4 million at the Ghaghoo mine which has been reported as loss from discontinued operations.

As reported earlier, the Company sold a 13.32 carat pink diamond recovered from Letšeng, for US$ 8.8 million, achieving a record price of US$ 656,934 per carat. Gem Diamonds also reported that three diamonds greater than 100 carats were recovered and an overall average price of US$ 1,697 per carat was achieved.

The Company’s 4-year Business Transformation programme is proceeding on schedule with US$ 42 million already realised net of implementation costs and fees in the first 18-months. The programme is on track to achieve the targeted US$ 100 million in incremental revenue, productivity improvements and cost savings by end 2021.

Gem Diamonds said that it had cash on hand of US$ 25.8 million

Clifford Elphick, Chief Executive of Gem Diamonds, said: “The prices achieved for the Period are 10% up from the prices achieved in the preceding 6-month period, notwithstanding the planned limited contribution from the Satellite pipe ore and current diamond market conditions.”