Sales lose their sparkle at Gem Diamonds

Gem Diamonds reported a fall in the number of precious stones sold during the last quarter on Wednesday, as the global market continued to struggle.

Gem said it had sold 23,955 carats in the three months to 30 September, a 10% fall on the number sold in the second quarter. The price achieved also dipped, to $1,310 per carat from $1,317.

In total, Gem recovered 26,913 carats compared to 22,857 in the second quarter. London-listed Gem owns 70% of the high-value Letseng mine in Lesotho, a specialist in large white diamonds, and 100% of the Ghaghoo mine in Botswana.

Gem noted: "As has been well documented, the global rough diamond market has experienced a downturn in 2023.

"A decrease in the number of large, high value diamonds recovered, combined with this market pressure, have negatively impacted the average dollar per carat and revenue achieved during the period."

The highest prices achieved during the period was $36,399 per carat for a white, 58.71 carat type IIa diamond, and $67,853 per carat for a 5.96 carat pink diamond. Four diamonds sold for more than $1m each.

The firm provided no guidance for the current quarter or full year, although it noted that two diamonds greater than 100 carats had been recovered and would be sold in the fourth quarter.