Gem Diamonds’ Letseng Mine Records “Exceptional” H1 Performance

Gem Diamonds Ltd. (LSE:GEMD) released a trading update for the first half of 2014, commenting that its Letseng mine performed exceptionally, recording an 80-percent increase in revenue compared to the year-ago period.

Meanwhile, the first diamonds were recovered at the company’s Ghagoo mine.

Other highlights at Letseng include:

• 29% increase to 54 678 in carats recovered compared to H1 2013.
• 14% increase to 53 799 in carats sold in the first five tenders of 2014, compared to H1 2013.
• 58% increase in average value per carat of US$ 2 747 achieved for the first five tenders of 2014, compared to H1 2013.
• 37 rough diamonds achieved a value in excess of US$ 1.0 million each.
• 77 rough diamonds achieved a value in excess of US$ 20 000 per carat.
• 5 rough diamonds achieved a value in excess of US$ 60 000 per carat.
• A total of 311 rough diamonds greater than 10.8 carats in size were sold.
• Three exceptional quality +100 carat diamonds – a 162.02 carat, a 161.31 carat and a 132.55 carat, were sold for US$ 11.1 million, US$ 2.4 million and US$ 7.5 million, respectively.
• Tonnes of ore treated up 6% on H1 2013.

Clifford Elphick, CEO of Gem Diamonds, commented:

This has been a strong half-year for Gem Diamonds with one of the best ever performances at Letšeng.  This, reflects the current mine plan and the technical improvements and optimisation programmes which are taking place at Letšeng. Additionally, good progress has been made with the development of the Ghaghoo mine. The mine has been built and commissioning has begun. This new mine will unlock considerable long-term value. The Company has increased its cash position to a Group cash balance of US$ 114 million which is significant given the Board’s stated intention to pay a maiden dividend for the 2014 year.

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