In October Gem halted manufacturing for 2 days at its Letšeng mine in Lesotho, to permit for votes in a basic election. As well as, October noticed a secondary crusher breakdown at its Plant 2, and continued energy disruptions. Repairs to the secondary crusher have been accomplished and the plant is working at regular capability.

Because of the disruptions, Gem Diamonds stated its full-year steerage for ore therapy is now 5.45Mt, down from a earlier vary of 5.60-5.80Mt.

Gem is now guiding for restoration and gross sales of round 104,000ct, down from a earlier steerage of 112,000-116,000ct. Gross sales are guided for 105,000ct, down from round 110,000-114,000ct.

However balancing current operational points have been third-quarter outcomes that highlighted increased diamond costs.

Gem reported income in September quarter of US$56.6 million, up by 19.7% year-on-year. The rise in income was because of increased diamond costs, with a mean worth of US$2,028/ct, in comparison with US$1,589 a yr earlier.

Diamond manufacturing within the quarter was 25,018ct, within the quarter, taking the year-to-date whole to 80,174ct, down from 82,266ct over the identical interval final yr.

And analysts downplayed the impact of the steerage revision.

“We imagine the profit from a weaker Rand and resilient diamond costs will assist to scale back the impression of this revision,” Panmure Gordon stated in a be aware.

Liberum was upbeat on tough diamond costs.

“Now we have been stunned by the robustness of tough diamond costs being reported by the diamond corporations, contemplating the weak point we’re seeing in polished costs,” Liberum stated in a be aware. “It is attainable these corporations are having fun with a considerable non-Russia premium.”

Gem Diamonds shares in London have been up 2.4% at 29.90p, at 12.04 London time.