Gem Diamonds Upbeat On Sales And Cost-Cutting

Gem Diamonds Limited Chief Executive Clifford Elphick said prices achieved at its Letseng mine for the half year ending 30 June are 10% up from the prices achieved in the preceding 6-month period, notwithstanding the planned limited contribution from the Satellite pipe ore and current diamond market conditions.

Revenue overall was US$91.3 million (US$167.7 million in H1 2018).

Letšeng

  • Sold a 13.32 carat pink diamond for US$8.8 million, achieving a record price of US$656 934 per carat
  • Recovered 3 diamonds greater than 100 carats
  • Implemented inter-ramp pit slope steepening, resulting in a lower LoM strip ratio
  • Average price of US$1 697 per carat achieved
  • Reported one fatality and two lost time injuries

Business Transformation

  • US$42 million has been realised net of implementation costs and fees in the first 18-months of the 4-year Business Transformation programme
  • US$ 100 million in incremental revenue, productivity improvements and cost savings to end 2021 is on track

Technology and Innovation

  • Construction of the ‘detecting diamonds within kimberlite’ pilot plant at Letšeng was completed with commissioning and ramp-up planned for latter part of Q3 2019

Elphick said: “Letšeng achieved US$ 1 697 per carat for the Period with the sale of the 13.32 carat pink diamond achieving a Letšeng record of US$ 656 934 per carat, reaffirming the unique quality of Letšeng's diamond production."