Mining company uncovers eight massive diamonds in just six months despite falling demand
Gem Diamonds, the mining company, has reported a robust start to its financial year after discovering eight diamonds over 100 carats in the first half of 2024. The London-listed firm, which operates mines in Lesotho’s Maluti Mountains, stated that these high-carat finds have boosted its revenue to $77.9m (£60.8m), up from $71.6m (£55.9m) in the first half of 2023.
Following the reporting period, a 145-carat type II white diamond was unearthed, marking the ninth diamond over 100 carats found this year. In total, Gem Diamonds sold 56,944 carats of diamonds, an increase from 52,163 carats during the same period last year.
The highest price achieved in the six-month period was $41,007 (£32,020) per carat for a 62.78-carat white diamond. A total of 11 diamonds were sold for more than $1m (£781,000) each, generating revenue of $29.5m over the six months.
However, demand for mined diamonds has been declining in recent years as cheaper synthetic products dominate the market. Anglo American, another London-listed miner and Gem Diamonds’ peer, announced in April that it had reduced output at its De Beers arm following a near-total collapse in consumer demand for diamonds at the end of last year.
Anglo stated that De Beers aims to produce 26-29m carats of diamonds this year, down from the previous target of up to 32m carats, with unit costs adjusted to $90 per carat (£72.81). In late October 2023, Canada’s Stornoway Diamonds filed for bankruptcy for the second time, as reported by City AM.
Experts are attributing the falling demand for mined stones to the rise of lab-grown diamonds as a viable alternative.
Max Spicer, a sales consultant at London Diamonds, disclosed to City AM in March that 90 per cent of customers choosing an engagement ring at his store over the past two years had opted for lab-grown diamonds.
He further commented: “We built our business on mined diamonds, and we were quite sceptical about lab-grown.”
“But once you get your head round that they’re identical… it’s pretty hard to tell someone to spend five to 10 times more money on a mined diamond, right? “