Gem Diamonds has now recovered twice as many +100 cts diamond this year than during the whole of 2023.
The UK-based company today announced a 129.71 carat Type II white diamond from its Letseng mine, in Lesotho.
It’s the 10th +100 cts diamond of 2024. Historically the mine averages eight per year, but last year it recovered only five.
The spike in high-value recoveries has helped push up revenue at Gem. Earlier this month it reported a 9 per cent increase in its first half earnings to $77.9m.
Letseng 70 per cent owned by Gem and 30 per cent by the Lesotho government is the highest dollar per carat kimberlite diamond mine in the world.
Pic courtesy Gem Diamonds, shows the 129.71 ct stone.
Africa-focused miner Gem Diamonds has unearthed a 145.55 carat, Type II white diamond at its prolific Letsěng mine in Lesotho.
The diamond, recovered on August 3rd, is the ninth greater than 100-carat precious stone recovered this year at the operation, the company said.
Type IIa diamonds are the most valued and collectable precious gemstones, as they contain either very little or no nitrogen atoms in their crystal structure. Boart diamonds are stones of low quality that are used in powder form as an abrasive.
The Type II, white diamond is the ninth greater than 100-carat precious stone recovered this year at the Letsěng mine.
The Letšeng mine is one of the world’s ten largest diamond operations by revenue. At 3,100 metres (10,000 feet) above sea level, it is also one of the world’s most elevated diamond mines.
Diamond miners are going through a rough patch as US and Chinese demand for diamond jewellery continues to be weak and the popularity of cheaper laboratory grown diamonds continues to rise.
In 2015, man-made diamonds had barely made an appearance as a competitor to natural diamonds. By last year, these stones accounted for more than 10% of the global diamond jewelry market, according to industry specialist Paul Zimnisky.
The market values of small to medium diamond mining companies, including Canada’s Lucara, South Africa’s Petra, and Gem Diamonds itself, are around $100 million or less. This is only about a third or a fourth of the price the large stones they aim to find may be worth.
The news comes as competitor Petra Diamonds postponed the sale of rough stones mined at its South African operations that would have been offered during the August/September event of the year, amid low demand.
Gem Diamonds Limited (LSE: GEMD) is pleased to announce the recovery of a high quality 113 carat white Type II diamond, recovered at the Letšeng mine in Lesotho on 17 February 2024.
A piece of white rock next to a magnifying glass Description automatically generated
Together with the 295 carat high quality Type II white diamond recovered on 8 January 2024 and a 139 carat low quality Boart diamond recovered on 17 January 2024, the 113 carat is the third greater than 100 carat diamond recovered to date this year.
Gem Diamonds saw revenue and average per carat prices down by around a quarter during 2023 amid ongoing “downward pressure” in the rough market.
The UK-based miner operates Letseng, in Lesotho, the highest dollar per carat kimberlite diamond mine in the world.
It says total sales for the year were $139.4m, down 26 per cent, and the average per carat price was down 24 per cent to $1,334.
The highest price it achieved during the year was $33,745 per carat for a 117.09 carat white diamond which sold for $4m. It also sold six $1m-plus diamonds for a total of $13.8m.
Revenue for Q4 was $36.4m, up 14 per cent on Q3, according to its Q4 2023 Trading Update published on 1 February). Gem says it recovered 32,142 carats in Q4, up 16 per cent on Q3.
Recoveries of large diamonds in 2023 were similar to 2022, but below the mine’s average since 2008. The decrease in prices achieved in 2023 negatively impacted overall revenue achieved during the year.
Letseng is 70 per cent owned by Gem and 30 per cent by the Lesotho government.
