Gem Diamonds experienced strong growth in revenue in 2024, driven by an increased recovery of large stones, which led to a rise in average prices. The company's sales from the Letšeng mine in Lesotho grew by 10% year-on-year, reaching $152.8 million, according to a trading update released on Wednesday. Sales volume also rose by 5%, reaching 109,967 carats, with the average price per carat increasing by 4% to $1,390.
Notably, the company unearthed 13 rough stones larger than 100 carats during the year, compared to just five the previous year, contributing significantly to the overall price increase.
While full-year production fell by 4%, totaling 105,012 carats, the output still exceeded the company's forecast of 98,000 to 101,000 carats for the year.
However, revenue for the fourth quarter saw a decline, falling 12% to $32.2 million. Sales volume dropped by 7% to 26,356 carats, while the average price per carat slipped by 5% to $1,223. Production for the quarter plummeted by 24%, totaling 24,461 carats.
During the final three months of the year, Gem Diamonds sold six diamonds for over $1 million each, contributing $11.6 million to its total revenue. The highest price achieved during the period was $45,077 per carat for a 3.52-carat pink diamond.