Half Year 2024 Gem Diamonds Ltd Earnings Call Transcript
Key Points
- Gem Diamonds Ltd (GMDMF) achieved a dollar per carat of $1,366, maintaining a stable price despite industry pressures.
- The company reported a 9% increase in overall revenue, reaching $78 million for the period.
- Operational efficiencies and cost containment efforts led to a significant reduction in operating costs, contributing to a doubling of EBITDA to $19.1 million.
- The company successfully reduced its net debt from $21 million to $8.4 million, improving its financial position.
- Gem Diamonds Ltd (GMDMF) is on track to meet its decarbonization targets, with a 25% reduction in carbon emissions compared to its 2021 baseline.
- The diamond market is under significant pressure due to high interest rates, geopolitical tensions, and competition from lab-grown diamonds.
- The all injury frequency rate increased to 0.6, with three lost time injuries reported in the first half of 2024.
- The company faces challenges in the lower-end diamond market, with goods priced at $200 per carat and less struggling.
- Depreciation costs have nearly doubled due to the purchase of a new mining fleet, impacting overall expenses.
- The effective tax rate remains high due to limited tax benefits from other operating divisions, affecting net profitability.
Good morning, ladies and gentlemen, and welcome to Gem Diamonds' half year results presentation for the six months ended June 30, 2024. Our presenters today are Clifford Elphick, CEO of Gem Diamonds; Michael Michael, CFO, Brandon de Bruin, the CEO.
Please note that you are able to post questions using the Q&A function at the bottom of your screen. All questions will be answered at the end of the presentation.
I will now hand over to Clifford. Clifford?
Good morning, everybody, and thank you for attending this half year report of Gem Diamonds Limited. If you turn over the page, Janine, to page 2, the disclaimer and then on to page 3. So this is a snapshot of the half year, a good -- if you go to the top left-hand box, a good year in terms of -- a good market in terms of carats recovered. Dollar per carat at $1,366, I think will be a big part of the discussion, and we'll talk about this in some detail. This is more or less what we achieved in the previous six
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
