Mine clo­sures force rev­enues 24pc lower at Gem Di­a­monds

The Daily Telegraph - Business - - Business -

◆ South­ern Africa-fo­cused di­a­mond pro­ducer Gem Di­a­monds’ rev­enues fell 24pc to $69.5m (£52m) over the half-year as coro­n­avirus forced mine clo­sures, writes Rachel Mil­lard.

The miner, which owns the Let­seng di­a­mond mine in Le­sotho and the Ghaghoo mine in Botswana, cut salaries and other costs to help it through the tem­po­rary sus­pen­sion of Let­seng, but pre-tax profit from con­tin­u­ing op­er­a­tions fell from $18m to $2.5m.

The busi­ness ex­pects global rough di­a­mond sup­ply to de­crease from 141m carats in 2019 to 110m in 2020 due to in­dus­try­wide mine clo­sures and other coro­n­avirus-re­lated dis­rup­tion.

Gem Di­a­monds, led by Clif­ford El­ph­ick, its chief ex­ec­u­tive, has been buoyed in re­cent weeks by the an­nounce­ments of two ma­jor di­a­mond finds in Let­seng – 442-carat and 233-carat – which are among the largest finds this year glob­ally. The com­pany has in­tro­duced strict coro­n­avirus pro­tec­tion mea­sures across its sites. It said two em­ploy­ees from Let­seng had died while in quar­an­tine, but these had not yet been con­firmed by the Le­sotho au­thor­i­ties as Covid-19 re­lated deaths.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.