Gem Diamonds sees prices regain sparkle

19th Oct 2009 07:57

Gem Diamonds, which mines for the gemstones in Africa, southeast Asia and Australia, said diamond prices are recovering, though they are still well below the levels they sat at before the global economic crash that started in September last year.The firm said it was seeing strong demand from its Letseng mine in Lesotho and the Ellendale mine in Australia.'Our strategy has continued to be to preserve cash and maximise returns from Letseng and Ellendale, with a continued focus on both operational and central costs,' said chief executive Clifford Elphick.Gem Diamonds said the important US market appeared to be stabilizing, albeit at lower levels. It remains cautious ahead of the US Christmas season, it said.Demand for jewellery is strong in China and India and has remained resilient in the rest of Asia aside from Japan, the firm said.