Gem Diamonds’ 2013 Revenue Up 5 Percent

Gem Diamonds Ltd. (LSE:GEMD) announced its 2013 results, commenting that its revenue for the year came to US$213 million, a 5-percent increase from 2012. Attributable net profit rose 23 percent, to US$21 million.

One of the company’s main goals this year was to reduce diamond damage at its Lesotho-based Letšeng  mine. That initiative led to “a significant reduction in diamond damage.”

Other financial results include:

• Underlying EBITDA US$77 million, 18%
• Basic EPS US cents 15.3, up 24%
• Cash on hand US$71 million as at 31 December 2013 (net after debt); (US$63 million attributable to Gem Diamonds)

Operational highlights include:

LETŠENG:

• Carats recovered of  95 053
• Average US$ per carat US$2 04*
  
• Tonnes treated 6.2 million
• Waste tonnes moved 19.1 million tonnes
• 12.47 carat blue diamond sold for US$7.5 million, a Letšeng record of US$603 047 per carat
• Letšeng achieved a 5 star rating in external HSSE audit

^*includes carats extracted for polishing at rough valuation

GHAGHOO:

• Construction of the sand portion of the access decline completed
• Extension of the main decline into basalt commenced
• Construction of the processing plant ready for final commissioning.
• Kimberlite intercepted
• US$71.2 million (of a total of US$96 million Phase 1 capital budget) spent as at 31 December 2013
• Ghaghoo maintained its 4 star rating in external HSSE audit

Click here to read the full Gem Diamonds Ltd. (LSE:GEMD) press release.