Gem Diamonds Limited, announcing its half yearly results for the period ended June 30, 2018 said that both revenue and profit surged significantly due to record recoveries of large, high quality diamonds at the Letšeng mine, combined with the discovery and subsequent sale of the 910 ctLesotho Legend.

The Company reported revenue of US$167.7 million (up 81% from US$92.9 million in H1 2017) and an underlying EBITDA, before exceptional items,of US$68.4 million (US$13.0 million in H1 2017).

It said that as compared to an attributable loss after exceptional items of US$2.9 million in H1 2017, the attributable profit before exceptional items in H1 2018 stood at US$24.5 million and after exceptional items at US$24.2 million.

Cash on hand too rose to US$70.5 million, up from US$47.7 million on 31 December 2017.

During this period, the Letšeng mine in Lesotho yielded ten diamonds greater than 100 carats including the 910 carat Lesotho Legend, a new half yearly record. Gem Diamonds saw rough tender revenue reach record levels of US$169.2 million (US$88.8 million in H1 2017), with the average price of US$2,742 per carat representing a 54% increase over the US$1,779 per carat recorded in H1 2017. As many as 25 diamonds achieved a sales value of greater than US$1 million each, the Company said.

While ore tonnes treated of 3.0 million was marginally below the 3.2 million tonnes treated in H1 2017, carats recovered rose to 61,596 as against 50,478 carats in H1 2017.

Clifford Elphick, Chief Executive of Gem Diamonds, said, "Letšeng’s improved recoveries combined with the discovery and subsequent sale of the Lesotho Legend has generated a strong set of results. Letšeng produced a record number of diamonds greater than 100 carats for any six-month period in the mine’s history reaffirming the exceptional and unique quality of Letšeng. Subsequent to June, two further diamonds larger than 100 carats have been recovered, with the latest in August marking the twelfth such recovery for the year. This now positions 2018 as a record for recoveries of diamonds greater than 100 carats in a single year.

“The market for Letšeng’s high-quality diamonds has remained robust, with an average price achieved of US$2,742 per carat during the Period, up 54% compared to H1 2017 of US$1,779. It is also pleasing to report on the progress of the Business Transformation. This has already seen initiatives achieved in revenue, productivity improvements and cost savings to the value of US$47 million of the 2021 US$100 million target."