Gem Diamonds suffers as prices slump
Gem Diamonds, the Australia and Africa focused minerals miner, has been forced to delay development projects at two of its operations as the falling price of diamonds has begun to bite.
Gem Diamonds, the Australia and Africa focused minerals miner, has been forced to delay development projects at two of its operations as the falling price of diamonds has begun to bite.
In the six months to the end of June total revenue was $180.2m against $196.5m in the same period of last year.
Profits before tax for the period were down sharply at $36.3m against the $79m seen in the prior year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The main problem has been the drop in the price of diamonds at the group's Letseng mine in the Kingdom of Lesotho, where the average value of diamonds for export fell from $3,052 per carat last year to $2,133 this year.
This drop in price has forced the board to delay two big development projects in Botswana and Lesotho. The Chief Executive, Clifford Elphick, said if economic conditions improves, the company would consider "accelerating" the projects once again.
The group's shares have fallen 2% this year and are down 16% since May.
BS
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Review: Eden Roc Cap Cana – fun, sun and golf in the Caribbean
Travel Eden Roc Cap Cana in the Dominican Republic offers everything from relaxing by the pool to a world-class golf course
-
Reeves delays cash ISA reform, but savers are not out of the woods yet
The chancellor has reportedly delayed plans to cut the cash ISA limit, which were set to be announced at Mansion House on 15 July, and will take more time to consult with the industry