Gem Diamonds has reported its financial results for the calendar year 2016, posting sharp drops in revenue and profit, IDEX Online reports. Revenue for 2016 dropped to $189.8 million from $249.5 million in 2015, and profit totaled $32.3 million – down from $67.4 million in 2015.
As a consequence, the miner has “resolved not to propose the payment of a dividend in respect of the 2016 financial year”.
The company’s flagship mine, Letseng in Lesotho, produced 108,206 carats during the year – down from 108,579 carats in 2015. The average value per carat was $1,695 – down from $2,299 in 2015 “due to fewer 100+ carat diamonds being recovered”.
At Ghaghoo mine, “carats recovered totaled 40,976 carats from 91,499 carats in 2015, while the average value was $152 per carat from $162 per carat the previous year. There were total sales of $7.2 million from 47,266 carats sold”. Ghaghoo was placed on care and maintenance in February 2017 “due to low prices achieved for this category of diamonds”, according to the report.
According to CEO Clifford Elphick, “Ghaghoo provides Gem Diamonds with the flexibility to restart operations, when prices for this category of diamonds recover”.
