Gem Diamonds CEO Pleased with 2015 Results

Gem Diamonds Ltd. (LSE:GEMD) released its results for the year ended December 31, 2015. Revenue came in at US$249.5 million, 8 percent less than the year-ago period, while underlying EBITDA was US$103.5 million, a 2-percent fall from 2014.
Other financial highlights are as follows:

• Profit for the year US$67.4 million, up 12% YoY
• Attributable profit (post exceptional items) US$52.0 million, up 57% YoY
• Earnings per share (pre exceptional items), 30.2 US cents, up 26% YoY

Clifford Elphick, CEO of Gem Diamonds, commented:

It is pleasing to see that the prices achieved for Letšeng’s diamonds during 2015 have remained robust despite the sharp downturn in the global market. The world class, high quality diamonds, for which Letšeng is renowned, have contributed to the strong results at an average price of US$2 299 per carat for the year.

Although 2015 was a challenging year for the diamond mining industry, it is encouraging to report that the Group has delivered a strong set of operational and financial results. The Group continued to implement its strategic objectives of capital discipline by investing in low cost high return capital projects. The increase in the recoveries of the important +100 carat diamonds from an average of 6 per year to 11 in 2015 demonstrates the success of the initiatives.

The key objectives for the development of Phase 1 at the Ghaghoo mine have been achieved. In this regard, the average grade recovered during the year met the expected reserve grade and following the commissioning of the surge bin in January, the key metric of 2 000 tonnes per day through the processing plant was achieved. 

The strong financial results achieved in 2015 have enabled the Board to recommend an ordinary dividend of 5 US cents per share and, in addition to this ordinary dividend have recommended a special dividend of 3.5 US cents per share. The special dividend relates to the cash saving arising from the settlement of a previous tax assessment.

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