Revenue at Gem Diamonds declined by a third last year amid a sharp fall in diamond prices during the 12 months, the London-listed firm said yesterday.
Revenue fell 32 percent year on year to $200 million (R1.8 billion), while underlying earnings declined to $65m from $74m.
Gem Diamonds, which owns the Letšeng mine in Lesotho, reported a $117.9m net loss from a $61.5m profit a year earlier as it discontinued operations, resulting in a loss a share of 85c.
The company sold its Ellendale mine in Australia to Goodrich Resources for $15.4m last year.
“The disposal of underperforming assets will result in a more focused management team, confident of improving returns to shareholders in the coming years,” chief executive Clifford Elphick said. The shares fell 7.5 percent by 4pm in London. – Dineo Faku