Gem Diamonds’ revenue rose in the first quarter as demand for rough from its Letšeng mine in Lesotho began to return.
Sales grew 17% year on year to $43 million for the three months ending March 31, the company said last week. Sales volume climbed 27% to 32,571 carats, outweighing an 8% drop in the average price to $1,321 per carat.
The result reflected a favorable comparison with the same period in 2023 when rough demand was weak amid an oversupply in the midstream and economic challenges.
Revenue rose 18% from the fourth quarter of 2023, with sales volume up 15%. The average price advanced 3%.
The company sold five diamonds for more than $1 million each during the first three months of the year, contributing $18.6 million to the total revenue. That compares with seven diamonds a year ago, for $11.1 million. A 113.11-carat white diamond, which sold for $39,345 per carat, garnered the highest price in the first quarter of 2024.
Production for the period increased 10% to 30,506 carats as the company mined higher-grade ore.
Meanwhile, on April 18, at the start of the second quarter, Gem Diamonds recovered a high-quality, 169.15-carat, type II rough diamond.
That was followed by the discovery of a 118.74-carat, type II stone on April 28, marking the fourth and fifth diamonds over 100 carats the miner has unearthed so far this year. That compares with only one of that magnitude by the end of April 2023.
