Gem earnings fall on lower prices

Miner Gem Diamonds yesterday posted a slump in underlying earnings, as diamond prices took a slide. Underlying earnings before interest, tax, depreciation and amortisation fell to $66m (£44.4m) over the full year, down from $167m in 2011. Revenue fell 34 per cent to $202.1m. Gem sold 107,617 diamond carats at an average price of $1,932 a carat from its Lesotho-based Letseng mine, compared to 107,000 carats at $2,776 per carat in 2011.