Gem Diamonds boosted by rising prices

15th Mar 2011 07:10

Record average prices for stones from its Let?eng and Ellendale mines towards the end of 2010 helped diamond miner Gem lift profits by nearly 40% last year.Revenues in 2010 rose to $266m from $243m, underlying profits rose by 47% to $82m and pre-tax profits rose 39% to $54.5m.Apart from a recovery in prices for rough diamonds in last quarter, Gem fund more than 500 rough diamonds greater than 10.8 carats in size at Let?eng and three remarkable diamonds (196ct, 184ct and 116ct). Prices for Ellendale's fancy yellow diamonds sold to Tiffany & Co also rose by 25%."2011 has begun on an extremely positive note. Not only have rough diamond prices continued to increase as a result of perceived supply shortages, but polished prices have too, and volumes of trading are pleasing. Management has been concentrating on delivery of growth and control of costs," chief executive Clifford Elphick said.