GEM Diamonds gets “good value” for high value stones in Antwerp tender

Antwerp diamond tender

THERE was “good value” for high value diamonds, said Clifford Elphick, CEO of GEM Diamonds following a tender in Antwerp.

“The results of the latest tender for Letšeng’s large diamonds are positive,” said Elphick.  “With an average dollar per carat for the first half of the year of $1,707, and 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 Letšeng diamonds.”

The realised average dollar per carat price achieved compared to $1,687/carat in the first half of the firm’s 2019 financial year and the $1,506/carat achieved in the second half of the year, the firm said.

Notably, a 13 carat pink diamond achieved $40,110 per carat, and a 61 carat white Type II diamond achieved $31,400 per carat, it said. Some 15 diamonds sold in the first half of the current financial year were in excess of $1m each and one diamond for over $5m.

The tender was important as it represents one instance where the world’s diamond sector is starting to re-open. GEM said it was held in strict compliance with COVID-19 health and safety protocols and appropriate social distancing guidelines.

In March, GEM said underlying earnings before interest, tax, depreciation and amoritisation (EBITDA) fell 58% year-on-year to $41m.

Costs fell on lower production – total operating costs were at the end of guidance at some $245.9/t – but taxed profit was 90% lower at some $15.1m. The outcome at the share earnings level was 5.1 cents versus 22.9c/share in 2018, a 78% fall.

1 COMMENT

  1. GEM trading on 1,5 x EBITDA! Either the market is crazy or it’s telling us something! Bloody scary!

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