GB : Gem Diamonds - Dividend up on good FY21 results

Gem Diamonds had a good FY21, delivering on guidance in all areas and enjoying strong pricing. This led to EBITDA of $57.4m, slightly behind our $60m estimate but a big beat on consensus of $46m. With net cash of $21m, Gem is proposing a divi of 2.7¢ps (c.3.5% yield) or c.$3.8m (2020: 2.5¢ps, $3.5m). Encouragingly, robust diamond demand and pricing have extended into 2022. There is no noticeable impact from Russia-Ukraine as yet, which we currently see as more likely to be positive (reduced Russia supply) than negative (lower demand). We therefore maintain BUY.