Gem Diamond sees average carat prices jump

Gem Diamonds reported a jump in average carat prices on Thursday following its latest precious stone tender.

The London-listed firm, which owns 70% of the Letseng mine in Lesotho, South Africa, said it had realised an average of $1,707 per carat in the first half of 2020, following the closure of the latest large diamond tender.

That compares to $1,687 in the first half of 2019, and $1,506 in the preceding six months.

Chief executive Clifford Elphick said the results of the tender were "positive".

"With certain stones selling above their anticipated post-Covid-19 valuations, it is clear that there is a good level of demand for the high quality Letsang diamonds," he said.

In March, Gem Diamonds reported a slide in 2019 earnings and profits, which it attributed to oversupply, lower prices and weaker demand.

At 1100 BST, shares in Gem were trading 3% higher at 25.8p.

The tender, which was held in Antwerp, including a 13-carat pink diamond, which achieved $40,110 per carat, and a 61 carat white Type II diamond, which achieved $31,400 per carat. A total of 15 diamonds sold for more than $1m, and one for more than $5m. The company did not specify the volume of sales.

Gem said that the small diamond tender had not closed, and that the average dollar per carat included the small diamonds for the latest tender valuation.