LONDON (ShareCast) - (Sharecast News) - Gem Diamonds sold 57,075 carats in its first half, it reported on Wednesday, generating revenue of $99.6m, up from $97.3m year-on-year, although prices and recoveries were down.
The London-listed firm said it achieved an average price of $1,745 per carat in the six months ended 30 June, down slightly from $1,783 per carat in the first half of last year.

It said the highest price achieved in the period was $66,059 per carat, for an 8.41 carat pink diamond.

The company sold 15 diamonds for more than $1m each, generating revenue of $25.8m in the half-year.

Three diamonds greater than 100 carats were recovered in the period, which were sold in the first tender after the end of the half-year for $13.9m.

Carats recovered in the period totalled 55,157, down from 56,504 year-on-year.

The firm said it ended the period with $24.2m cash on hand, while its drawn down facilities totalled $12.1m, resulting in a net cash position of $12.1m on 30 June, down from $20.9m at the end of December.

Gem Diamonds said it had undrawn and available facilities of $69.9m at period end.

The 2021 dividend of 2.7 US cents per share, proposed by the board in March and approved at the annual general meeting on 8 June, had now been paid.

During the half-year, the company purchased 1,520,170 of its shares at a weighted average price of 60.05p each under its share buyback programme.

Those shares were currently held in treasury.

The board also noted that the purchaser for the Ghaghoo diamond mine did not meet the extended long stop date of 10 May, resulting in the agreement lapsing.

It said it was continuing to pursue potential sales opportunities while other disposal or closure alternatives were also being considered.

"We continue to see a firm diamond market for the high quality Letšeng diamonds in 2022," said chief executive officer Clifford Elphick.

"We are managing the economic impact of global events which are contributing significantly to the slowing down of global economic growth and which are materially impacting energy and commodity prices and disrupting supply chains worldwide.

"The sanctions imposed on the Russian diamond producer Alrosa have exacerbated a shortage of rough diamonds in the market, supporting continued strong demand and robust prices for Letšeng's high-quality rough diamonds."

At 1111 BST, shares in Gem Diamonds were down 15.42% at 40.6p.

Reporting by Josh White at Sharecast.com.

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