London-listed Gem Diamonds, owner and operator of the Letšeng mine in Lesotho, has raised its production and sales guidance for the 2024 full year.
The company now expects to recover between 98,000 and 101,000 carats, with sales projected between 100,000 and 103,000 carats.
This is an increase from the previous guidance of 88,000 to 92,000 carats for recovery and 91,000 to 95,000 carats for sales.
Despite ongoing pressure in the global diamond market, which has affected revenue, Gem Diamonds has achieved significant success in improving operational efficiency and controlling costs, mitigating the impact on diamond prices. “In light of our improved performance, we have revised our guidance for the full year,” said CEO Clifford Elphick.
In the six months leading up to June 30, Gem Diamonds recovered 55,873 carats, up from 50,601 carats in the first half of 2023.
Revenue for the period rose to $78 million, compared to $71.8 million in the same period last year, while profit surged to $5.5 million, up from $1.5 million.
The company ended the first half of the year with $30 million in cash and reduced its net debt to $8.4 million, down from $21.3 million as of December 31.
