Gem Diamonds Limited (LON:GEMD) has reported a record number of 100+ carat diamonds recovered during the first half of its financial year, in addition to a 33% increase in the average carat price.
The diamond miner reported that it had recovered 10 diamonds greater than 100 carats over the period, including the Lesotho Legend, a high-quality 910-carat diamond that was the largest recovered to date from its Letšeng mine and was sold for US$40mln in March.
READ: Gem Diamonds recovers 100.5-carat diamond at Letšeng mine
The firm added that it had generated record rough tender revenues of US$169.2mln in the period, a 43% increase on the second half of 2017 while the average price per carat rose 33% to US$2,742 from US$2,061.
Gem also said that it had commenced a formal sale process for its Ghaghoo mine and that initial non-binding offers had been received.
Clifford Elphick, chief executive of Gem Diamonds, said the trend of large diamond recovery had continued into the third quarter, with another 100+ carat diamond recovered in July.
In a note to clients, analysts at City broker Liberum said: “Assuming the operational improvements and recoveries continue, and the Rand continues to weaken, Gem Diamonds will have a record year”.
In early morning trading Friday, Gem Diamonds’ shares were up 5.2% at 121.5p.