Gem Diamonds Sees 54-percent Rise in H1 Revenue

Gem Diamonds Ltd. (LSE:GEMD) announced its results for the first half of 2014, commenting that it recorded revenue of US$148.9 million, an increase of 54 percent from the year-ago quarter.

Other financial highlights include:

• Underlying EBITDA of US$62.2 million, up 87% (US$33.2 million in H1 2013).
• Attributable profit of US$19.7 million, up 129% (US$8.6 million in H1 2013).
• Basic EPS of 14.28 US cents, up 129% (6.23 US cents in H1 2013).
• Cash on hand of US$113.9 million as at 30 June 2014 (US$98.4 million attributable to Gem Diamonds). 

Clifford Elphick, chief executive of Gem Diamonds, commented:

The first half of 2014 was a very strong start to the year for Gem Diamonds with an exceptional performance at Letšeng.  The ongoing focus on low capex, value accretive projects, resulting in increased diamond liberation and reduced diamond damage have been implemented at Letšeng and are bearing fruit.  This, together with the current mine plan and the higher proportion of Satellite Pipe ore mined during the Period, has resulted in a 29% increase in carats recovered compared to the corresponding 2013 Period. Strong sales and robust demand throughout the Period has underpinned the positive start to the year.

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