Rapaport News



Rapaport Broadcast
Martin Rapaport’s Webinar on Estate Jewelry
October 30 2019

Advanced search
Latest Articles
Rough Markets
Polished Markets

Gem Diamonds Jumps Back into Black

Company sees profit after mine devaluation last year led to a loss.
Mar 14, 2018 10:55 AM   By Rapaport News
Print Print Facebook Facebook Twitter Twitter Share Share

RAPAPORT... Gem Diamonds returned to profit last year, after the devaluation of an underperforming mine drove it to a loss in 2016.

The miner recorded a net profit of $17.2 million for 2017, versus a loss of $144.1 million in 2016, it said Wednesday. The 2016 loss was mainly the result of a $170.8 million impairment charge, after the company decided to cease production at the Ghaghoo mine in Botswana due to weak prices. Gem Diamonds is currently seeking a buyer for the mine, and intends to focus primarily on its higher-value Letšeng asset in Lesotho.

Much of the miner’s financial performance depends on its success in recovering large diamonds. In 2017, revenue rose 13% to $214.3 million as it found seven stones above 100 carats, compared with five in 2016, while the average price jumped 14% to $1,930 per carat. Since the start of 2018, the company has already recovered seven stones over 100 carats, including, most recently, a 169-carat, white, type IIa stone it unveiled Wednesday.

“The second half of 2017 saw the company begin to benefit from the operational improvements implemented during the year, with a significant improvement in the recovery of the large diamonds from Letšeng,” said Clifford Elphick, CEO of Gem Diamonds. “The market for the mine’s large, high-quality white rough diamonds remained strong over the course of 2017, a trend which has continued into early 2018.”

The miner recently sold the 910-carat Lesotho Legend — believed to be the fifth-largest diamond in history — for $40 million at tender in Antwerp, after extracting the rough diamond in January.
Tags: Botswana, Clifford Elphick, Gem Diamonds, Ghaghoo Mine, impairment, Lesotho, Lesotho Legend, Letšeng, Rapaport News
Similar Articles
PetraPetra Forced to Halt Production in South Africa
Dec 10, 2019
Petra Diamonds has had to put operations on hold at itsthree South...
Alrosa Identifies Potential New Diamond Resources
KP Gives CAR More Export Freedom
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First

Call Us: 1-702-893-9400
Member License Agreement   RapNet Trading Rules & Code of Conduct    Privacy Policy  
twitter twitter
About Rapaport
Advertise with us