Aug 21 Gem Diamonds Ltd's first-half
profit more than halved, hurt by a rise in costs and lower
prices for the precious stone during the period.
Profit before tax was $36.3 million, down from $79 million,
a year earlier.
Revenue fell 9 percent to $180.2 million. Cost of sales rose
about 28 percent to $105.4 million.
Gem Diamonds said last month that production rose for the
first half at both its producing mines -- Ellendale in Australia
and Letseng in Lesotho. But average diamond prices fell during
Diamond prices have fallen since the beginning of this year,
on weaker demand amid the euro zone crisis and a slowdown in
growth in key diamond markets China and India.
The diamond miner has delayed development work at its Kholo
project at Letseng and its Ghaghoo mine in Botswana.
"Should market conditions improve materially, the project
execution will be accelerated," the company said.
Gem Diamonds shares, which fell 18.56 percent in the last
six months, closed at 190 pence on the London Stock Exchange on