National Property Portfolio on Auction

National Property Portfolio on Auction
Loading

Fall in prices hurts Gem Diamonds

March 13 2013 at 08:00am

Comment on this story

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


sign up
 
 

Comment Guidelines


  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

     

Join us on

 IOL-Social networks IOL-Social networks IOL-Social networks IOL-Social networks
IOL Travel

Make sure you find the best available airfares with our easy-to-use search engine.

Travel_pic_enw