Gem Diamonds upbeat despite price drop

Africa-focused Gem Diamonds said it had performed well in the nine months to the end of September despite a drop in rough diamond prices from the peaks of July 2011.The miner said it remains confident in the medium to long term as it recovered 82,584 carats, 20% more than the year before.Gem Diamonds, which mines from its Ellendale mine in Australia, Letseng in Lesotho and Ghagoo in Botswana, said the grade per carat also increased 39% to 1.63 carats per hundred tons. In the nine months to 30 September Gem Diamonds sold 75,346 carats, up 18% from the year before for a total of $215.7m. The group said it closed the period with $128.4m cash. Chief executive Clifford Elphick noted, "The Letseng and Ellendale mines continue to deliver some of the world's finest diamonds, cementing our position as a global leader in the supply of world-class high end diamonds." Production at Ellendale was disappointing but Gem said measures had been taken to improve the situation. --cj Gem Diamonds Di