Gem Diamonds Di Share News (GEMD)

Gem Diamonds was in demand Thursday despite reporting an 18% drop in first half sales from its flagship Letseng mine, as it said prices have improved in recent months.Sales of rough diamonds at the mine in Lesotho fell to $74.13m during the first half of 2009 from $89.95m a year ago. The average price fell 48% to $1,308 per carat versus more than $2,500 last time."The diamond market experienced further falls in prices of rough diamonds at the beginning of the first half of this year, however in recent months prices first stabilised and then strengthened," said boss Clifford Elphick.Although he remains "cautious" about the strength of consumer demand in the US, Elphick says Gem's large diamonds from Letseng are attracting high prices per carat.Gem Diamonds owns 70% of Let?eng Diamonds in partnership with the Government of Lesotho which owns the other 30%.