23 Nov 2017
DiamondWorld Directory
Home |
News
Home
Gem Diamonds’ revenues dip in 2016
Profits take a dive
By: Diamond World News Service
|
Mar 18 2017 9:52AM
|
Reference: 14000  

DecreaseIncrease
Image Courtesy: Gem Diamonds Limited
Image Courtesy: Gem Diamonds Limited
Gem Diamonds Limited announced its full year results for the year ending 31 December 2016, in which it noted a dip in revenues on y-o-y basis. Its revenues stood at US$189.8 million (US$249.5 million in 2015), while profits was worth US$32.3 million (US$67.4 million in 2015). Attributable profit (before exceptional items) US$17.7 million (US$41.8 million in 2015).

There was US$176.5 million non-cash impairments relating mainly to the decision to place Ghaghoo on care and maintenance, attributable loss of US$158.8 million.

Diamonds from the Letšeng mine achieved a lower average value of US$1 695* per carat from US$2 299 in 2015) due to fewer +100 carat diamonds recovered. Of the 108 206 carats recovered in 2016, five diamonds larger than 100 carats each were recovered and the largest was a 160.2 carat Type II white diamond. A 11.8 carat pink diamond, sold for US$187 700 per carat, making it the third highest price per carat sold by Letšeng.

At Ghaghoo, carats recovered were 40 976 from 91 499 in 2015, while average value achieved was US$152 per carat (US$162 per carat in 2015). Total sales of diamonds from the mine valued US$7.2 million for 47 266 carats. The operation was placed on care and maintenance in February 2017 due to low prices achieved for this category of diamonds.

Clifford Elphick, Chief Executive of Gem Diamonds, said: “Letšeng has performed well operationally and achieved all production metrics within targets and guidance. Demand and prices achieved for the large, high quality diamonds recovered from Letšeng have remained firm, but the decline in 2016 in the recovery of diamonds larger than 100 carats has had a disappointing impact upon revenue and cash flow. This recovery rate is consistent with the normal, short term variability of the resource. Based on a detailed geological understanding of the resource, we remain confident that Letšeng will continue to produce exceptional diamonds.” He also stated that “At Ghaghoo, solid progress was made developing the mine. Given the low prices achieved for this category of diamonds, the mine was placed on care and maintenance in February 2017. Ghaghoo provides Gem Diamonds with flexibility to restart operations, when prices for this category of diamonds recover.”

“Speaking on the year ahead he said, “The supply demand fundamentals for the diamond industry remain strong. Focus in 2017 will be on cash generation. At Letšeng, the implementation of the updated life of mine plan is expected to improve cash flows through an optimised waste mining profile.”

Have Your Say
* Your view
* Name:
* Email:
* Town/city:
* Country/State:
Advertisement
HouseAd_Trade Fair
Search News by City
Advertisement
Kosher 23460
Advertisement
HouseAd_Trade Fair
Recent Issue
2017
AVAILABLE NOW...!
Advertisement
Kosher 23460
News in Pictures
Videos
VOD DUBAI INTERNATIONAL JEWELLERY SHOW 2017
Pictures: 60
35th Hong Kong Jewellery & Gem Fair
Pictures: 16
Week in Photos – 14 to 19 August 2017
Pictures: 8
India International Jewellery Show 2017
Pictures: 16
Basel World 2017
Pictures: 31
GJEPC 50 years celebration
Pictures: 8
Mines to Market Conference 2017
Pictures: 28
Spotted
Pictures: 28
HKTDC Hong Kong International Jewellery Show 2017
Pictures: 25
43rd India Gem and Jewellery Awards
Pictures: 29
JJS - IJ Jewellers Choice Design Awards 2015 powered by GIA
Views: 8180
GJEPC Chairman Interview
Views: 7279
IJ Jewellers Choice Design Awards 2012 - Part 1
Views: 13502
Promo for IJ Awards 2012 at NDTV Profit
Views: 23098
IJ Jewellers Choice Design Awards 2012- Part 2
Views: 26406
Couture India 2016 - A Business Boutique Show by IJ Magazine
Views: 6392
Savjibhai Dholakiya, Surat Businessman (Diamond Merchant) speaks in Vibrant 2015
Views: 24290
IJ Jewellers Choice Design Awards 2013 - NDTV Video
Views: 25120
Advertisement
Kiran Gems
Advertisement
Jewellery Arabia 2017
Member of:
Supporter of: