Gem Diamonds Limited (LON:GEMD) shares were on the front foot in Wednesday’s opening deals, up 3.23% to 119.75p, after releasing positive half-yearly results boosted by large, high-quality diamond discoveries.
It unearthed the 910 carat Lesotho Legend diamond which was sold for US$40mln, it recovered 10 diamonds of greater than 100 carats, which marks a new company record for a six month period, and 25 diamonds were sold for more than US$1mln each.
READ: Gem Diamonds posts record number of 100+ carat diamond recoveries
Rough stone tenders, meanwhile, brought in a total of US$169.2mln in the period.
Revenue for the six months, ended June 30, amounted to US$167.7mln representing an 81% improvement on the US$92.9mln generated in the first half of 2017.
Earnings (underlying EBITDA, before exceptionals) were highlighted at US$68.4mln from US$13mln, pre-tax profit came in at US$65.1mln, while net profit totalled US$41.2mln and the ‘attributable profit’ figure was stated at US$24.5mln.
Gem ended the period with US$70mln of cash on hand, up from US$47.4mln at the start of the period.
"We are pleased to report our 2018 half yearly results. Letšeng's improved recoveries combined with the discovery and subsequent sale of the Lesotho Legend has generated a strong set of results,” said Clifford Elphick, Gem Diamonds chief executive.
“Letšeng produced a record number of diamonds greater than 100 carats for any six-month period in the mine's history reaffirming the exceptional and unique quality of Letšeng.
“Subsequent to June, two further diamonds larger than 100 carats have been recovered, with the latest in August marking the twelfth such recovery for the year. This now positions 2018 as a record for recoveries of diamonds greater than 100 carats in a single year.”