Gem Diamonds Limited’s (LON:GEMD) Letšeng mine has made a strong start to 2016, helping to ease the effect of the downsizing of operations at the company’s Ghaghoo mine.
The diamond producer’s Lesotho-based Letšeng mine saw year-on-year rises in carats recovered as well the grade.
As a result, Gem Diamonds sold nearly US$88mln of diamonds from the mine between January and March, a 37% increase compared on the previous three months.
The good performance at Letšeng offset the reduced production at the company’s other diamond mine in Botswana.
The firm cut back operations at its Ghaghoo mine in a bid to save cash because of the “depressed” market currently.
As expected, this has led to fewer carats recovered in the first quarter of 2016 compared to the same period in 2015, and the grade recovered is also down year-on-year.
The company says it still plans to return the mine to full production once the market picks up.
Shares were flat at 135p.