Gem Diamonds H1 EBITDA falls despite 'strong demand'

Diamond producer Gem Diamonds said on Thursday that first-half underlying earnings had fallen despite "strong demand and robust prices".

Gem Diamonds stated interim EBITDA had slumped from $34.7mm to $20.9m as revenues dipped from $104.5m to $100.0m.

Cash on hand was said to have increased from $19.3m to $24.2m as of 30 June, while the group also highlighted that it still had $69.9m in unutilised facilities.

Gem Diamonds also said solid demand and robust prices achieved for diamonds from its Letšeng mine reflected "continued positive sentiment" in the diamond market and noted it had hosted a Dubai tender viewing in March 2022, which was "well-attended" and "contributed positively" to firm prices achieved during the half.

"The Letšeng operation has operated in line with expectations during the period despite challenges presented by severe weather conditions such as a high rainfall season and snow, which impacted both mining and treatment activities; increased frequency of electricity disruptions, and increased operating costs, most notably diesel and explosive consumables," added Gem Diamonds.

As of 1315 BST, Gem Diamonds shares were down 0.57% at 34.90p.

Reporting by Iain Gilbert at Sharecast.com