Gem Diamonds share price sparkles as earnings push stock to two-year high
Shares in Gem Diamonds soared yesterday to their highest level in two years after the mining company announced a huge increase in first-half earnings.
The diamond mining company, which has major operations in Botswana and Lesotho, saw underlying earnings rise 87 per cent to $62.2m (£37.4m).
Shares in the firm rose 6.29 per cent yesterday, to finish on 220.81p
Westhouse Securities analyst Rob Broke said: “Gem’s results highlighted the impressive start that the company has made to 2014, with strong cashflow generation supporting the potential for a maiden dividend” next year.
Production at Gem’s Letseng mine in Lesotho rose 29 per cent, as average price per carrat rose 58 per cent to $2,747 in the first five tenders of 2014.
It is also developing its Ghaghoo mine in Botswana.