Gem Diamonds Cautions About Weakening Diamond Prices

Gem Diamonds Ltd. (LSE:GEMD) announced a trading update on its operational and sales performance for Q4 2014, along with an update on the Ghaghoo mine.

As quoted in the press release:

The year ended very positively, with the December tender achieving an average of US$ 2 799* per carat. This resulted in an average value of US$ 2 140* per carat being achieved in Q4 2014 (US$ 2 603* per carat in Q3 2014), bringing the average for 2014 to US$ 2 540* per carat (US$ 2 043* per carat for FY 2013).

Gem Diamonds’ CEO, Clifford Elphick, stated:

The long term outlook for the diamond market remains strong, however during the fourth quarter the diamond market saw a weakening of prices following a year of price growth. This trend may continue into the first quarter of 2015.

Click here for the full Gem Diamonds Ltd. (LSE:GEMD) press release