Gem Diamonds Limited (LSE: GEMD) (“Gem Diamonds” or the “Company” or the “Group”) provides the following Trading Update detailing the Group’s operational and sales performance from 1 January 2022 to 30 June 2022 (“H1 2022” or the “Period”).
Highlights:
• 57 075 carats were sold during the Period (H2 2021: 54 573 carats), generating revenue of US$99.6 million (H2 2021: US$97.3 million) and achieving an average price of US$1 745 per carat (H2 2021: US$1 783 per carat).
• The highest price achieved in the Period was US$66 059 per carat for an 8.41 carat pink diamond.
• 15 diamonds sold for more than US$1.0 million each, generating revenue of US$25.8 million during the Period.
• Three diamonds greater than 100 carats (244.34, 127.58 and 124.65 carats) were recovered during the Period, which were sold in the first tender after Period end for US$13.9 million.
• Carats recovered during the Period were 55 157 (H2 2021: 56 504).
Corporate and Financial:
• The Group ended the Period with US$24.2 million cash on hand.
• Drawn down facilities amounted to US$12.1 million resulting in a net cash position of US$12.1 million at Period end (Q4 2021: net cash of US$20.9 million).
• The Group had undrawn and available facilities of US$69.9 million at Period end.
• The 2021 dividend of 2.7 US cents per share (US$3.8 million) proposed by the Board in March 2022 was approved at the Annual General Meeting on 8 June 2022 and has been paid.
• During the Period, the Company purchased 1 520 170 of its shares at a weighted average purchase price of 60.05 GB pence (78.07 US cents) per share under its share buyback programme. The shares are currently held as treasury shares.
• The purchaser for the Ghaghoo diamond mine did not meet the extended long stop date of 10 May 2022 resulting in the agreement lapsing on that date. The Group continues to pursue potential sales opportunities while other disposal or closure alternatives are also being considered.
Gem Diamonds’ CEO, Clifford Elphick, commented:
“We continue to see a firm diamond market for the high quality Letšeng diamonds in 2022. 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”
1. Diamond Market
Strong demand and robust prices achieved for Letšeng’s diamonds reflected the continued positive sentiment in the diamond market. The Group hosted another Dubai tender viewing in March 2022 which was well-attended and contributed positively to the firm prices achieved during the Period.
2. Letšeng
2.1. Rough diamond sales

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https://www.gemdiamonds.com/press-releases/2022/pdf/H1-2022-trading-update-17-aug-2022.pdf