UK-based diamond miner Gem Diamonds Limited reported a 16% drop in H1 2020 revenue to $74 million on account of a temporary shutdown due to Covid-19 health and safety measures.
Diamond production from the Letšeng mine in Lesotho fell 22% to 43,384 carats in the first six months of this year. In compliance with the Lesotho government’s lockdown order, Letšeng temporarily suspended operations between 28th March and 26th April 2020 (the lockdown period) and placed the mine on care and maintenance but has quickly returned to its standard treatment capacity, as well as ramped up waste mining activities from July.
Gem Diamonds said its latest tender in June included the sale of only the larger diamonds and the results were positive, in light of the current market environment. Sixteen diamonds sold for more than US$1.0 million each, generating revenue of $29.4 million during the period versus 12 diamonds that sold for more than US$1.0 million each, generating $26.6 million of revenue in H2 2019.
Gem Diamonds’ CEO, Clifford Elphick, commented: “The positive sales results during the period demonstrate the continued demand for Letšeng’s high quality diamonds with an average price of $1,707 per carat, despite the challenging global conditions.” Credit: @ Gem Diamonds