Gem Diamonds shares move higher after 183 carat diamond recovery

11:33, 4th February 2020
Abraham Darwyne
Abraham Darwyne
Company News
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  shares jumped on Tuesday after it announced it recovered a 183-carat white Type IIa diamond from its Letšeng mine in Lesotho.

The London-listed diamond producer said that the diamond was recovered the day before on Monday, along with two other high-quality diamonds, one of 89 carats and the other of 70 carats.

Large diamond finds are significant events for the diamond producer, as large high value diamonds from Letšeng account for 70 to 80% of its annual revenues.

The company reported in its 2019 half year report, sales of $91.3 million, and earnings of $25.3 million.

Investors will be anticipating Gem Diamond’s Q4 trading update due to be released on 13 February 2020. Its Q3 update revealed around $36.3 million in sales for the quarter.

Shares in Gem Diamonds were trading 4.17% higher at 65p on Tuesday

Gem Diamonds owns 70% of the Letšeng mine in Lesotho, the landlocked country encircled by South Africa. The government of the Kingdom of Lesotho owns the remaining 30%.

Letšeng is the world’s highest diamond mine at 3200 meters above sea level, it is famous for the production of large, top colour, exceptional white diamonds, and the highest dollar per carat kimberlite diamond mine in the world, regularly finding record setting diamonds.

In 2011, it found a 553 carat Type II D colour diamond, the 15th largest white diamond ever to be recovered, and the fourth historic diamond found by the firm.

In October 2019, Gem Diamonds announced that the Lesotho government renewed the Letšeng mining lease for another 10 years, and granted it exclusive rights for further renewals. 

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