Gem Diamonds See Revenues Drop In 2012

Gem Diamonds Ltd said full-year underlying core earnings fell 61%, hurt by weak diamond prices in 2012, Reuters reported. Earnings before interest, tax, depreciation and amortization on an underlying basis were $65.5 million in 2012, down from $166.5 million a year earlier, the report said. Revenue fell 34% to $202.1 million.
 
The miner sold 107,617 carats at an average price of $1,932 per carat from its Lesotho-based Letseng mine, known for its large high-value diamonds. This compares with sales of 107,700 carats at an average price of $2,776 per carat in 2011, according to the Reuters report.
The diamond company, which sold its Ellendale mine in Australia in December, said Ellendale's commercial diamond production achieved an average price of $181 per carat in 2012, a decrease of 4% from the prior year.
In January, Gem Diamonds forecast higher sales for 2013 and said it has seen an improvement in overall rough diamond prices so far this year, said the report.
The company's shares on the London Stock Exchange have lost roughly a third of their value in the past 12 months, according the Reuters report.