Gem Diamonds Ltd (LON:GEMD) reported higher profits in 2020 helped by a rebound in diamond prices in the second half of the year.
Underlying EBITDA from continuing operations rose to US$53.2mln, from US$41.0mln in 2019, as the company achieved an average value per carat of US$1,908 up from US$1,637 in 2019.
"The operational results were characterised by strong cash flows, the achievement of all revised operational metrics and the recovery of 16 diamonds greater than 100 carats each, the highest number recovered in a single year," said chief executive Clifford Elphick. "The stronger prices achieved in the second half of 2020, reaffirms the recovery of the diamond market and the unique quality of the Letšeng production."
The company, which owns 70% of the Letšeng mine in Lesotho, said the year had been very challenging and announced that it had secured COVID-19 vaccinations for its workforce and for the surrounding communities.
"While there was significant uncertainty regarding the impact of COVID-19 on the diamond market at the start of the pandemic, apart from a relatively short initial period, demand for diamonds returned and prices achieved remained relatively strong," said chairman Harry Kenyon-Slaney.
Gem Diamonds plans to pay an ordinary dividend of 2.5 US cents per share.