Three tenders of Letšeng diamonds achieve average of US$ 2146 per carat

Gem Diamonds Limited announced results of its operational performance between January to April 2015 and sales performance between the months January 2015 to 20 May 2015 (year to date).

During the said four months, the company recorded a continued strong performance at its Letšeng mine. The first three tenders of diamonds from the Letšeng mine achieved an average of US$ 2 146 per carat (US$2 140 per carat in Q4 2014). Total sales of these tenders achieved $77.1 million in revenues.

Gem Diamonds’ CEO, Clifford Elphick, said, “It is pleasing to see that the prices achieved for the first three Letšeng tenders of 2015 are on a par with those of Q4 2014, despite a noticeably weaker overall market for Q1 2015 as reported by other diamond producers.” He further added that, “the recovery of a 314 carat white diamond, which was virtually undamaged, and three other diamonds of over 100 carats underscores the technical advances made in reducing diamond damage. The 19 -day shutdown of Plant 2 to accommodate the upgrade of the plant was accomplished as planned.”

The sale included eight diamonds achieving a value above $1 million each. The diamond recoveries included a 314-carat, type IIa, white diamond being recovered and sold into a partnership arrangement for polishing in May 2015. Also, three high-quality diamonds of over 100 carats each were recovered at the mine.

The Group had US$ 92.5 million cash on hand as on date. The Group has drawn down US$ 35.6 million of its available facilities resulting in a net cash position of US$ 56.9 million as on date.

The company also stated that the development at Ghaghoo is progressing well, and is on track to achieve planned tonnages and grade for the second half of 2015. Altogether 67 330 tonnes of ore was treated during the Period, with 16,174 carats recovered at a grade of 24 cpht. An average recovered grade of 29 cpht has been achieved in the month of May to date, above the reserve grade of 27.8 cpht. Also, five diamonds of greater than 10 carats each have been recovered with the largest being of 48 carats.

The Board recommended a maiden dividend of 5 US cents per share (US$6.9 million) to shareholders following the final results announcement in March 2015 with payment to be made on 9 June 2015 to holders of ordinary shares on the register at close of business on 8 May 2015.