Gem Diamonds Limited Report on Payments to Governments (8351R)
19 June 2018 - 6:15PM
UK Regulatory
TIDMGEMD
RNS Number : 8351R
Gem Diamonds Limited
19 June 2018
19 June 2018
GEM DIAMONDS LIMITED
Report on Payments to Governments
for the year ended 31 December 2017
Introduction
This report provides an overview of the payments made to
governments by Gem Diamonds Limited and its subsidiaries (the
Group) for the 31 December 2017 financial year, as required under
the United Kingdom's (UK) Report on Payments to Governments
Regulations 2014 (as amended December 2015). These UK Regulations
enact domestic rules in line with Directive 2013/34/EU
(the EU Accounting Directive (2013)) and apply to companies that
are involved in extractive activities.
This report is also intended to satisfy the requirements of the
Disclosure and Transparency Rules of the Financial Conduct
Authority in the United Kingdom.
Basis for preparation
Reporting entities
This report includes payments to governments made by
subsidiaries in the Group which are engaged in extractive
activities. During the 2017 financial reporting period, extractive
activities were conducted in Lesotho and Botswana.
Extractive activities
Extractive activities relate to the exploration, prospection,
discovery, development and extraction of minerals, oil, natural gas
deposits or other materials. Gem Diamonds Limited, through its
subsidiaries, is engaged in diamond mining activities.
Scope of payments
The report discloses only those significant payments made to
governments arising from extractive activities.
Government
Government includes any national, regional or local authority of
a country. It includes a department, agency or undertaking (i.e.
corporation) controlled by that authority.
Payment types disclosed at legal entity level
Production entitlements
There were no payments of this nature for the year ended 31
December 2017.
Taxes
These are payments on the entity's income, production or
profits, excluding taxes levied on consumption such as value added
taxes, personal income taxes or sales taxes in line with in-country
legislation.
Royalties
These are payments for the right to extract diamonds and are
determined on percentage of sales in terms of in-country
legislation and / or mining lease agreements.
Dividends
These are dividend payments, other than dividends paid to a
government as an ordinary shareholder of an entity unless paid in
lieu of production entitlements or royalties. There were no
dividend payments of this nature to governments for the year ended
31 December 2017.
Signature, discovery and production bonuses
There were no payments of this nature to governments for the
year ended 31 December 2017.
Licence fees
These are fees paid for acquisition of leases and licences,
including annual renewal fees, in order to obtain and maintain
access to the areas in which extractive activities are performed.
These payments were not above the reportable threshold at entity
level and have therefore not been reported.
Payments for infrastructure improvements
There were no payments of this nature to governments for the
year ended 31 December 2017.
Cash flow basis
Payments reported are on a cash flow basis and may differ to
amounts reported in the Gem Diamonds Limited 2017 Annual Report and
Accounts which are prepared on an accrual basis.
Materiality level
In line with the guidance provided in the Report on Payments to
Governments Regulations, payments made as a single payment, or as a
series of related payments, that are equal to or exceed US$111 000
(GBP86 000) are disclosed in this report. All payments below this
threshold have been excluded.
Reporting currency
The payments to government have been reported in US dollar.
Payments made in currencies other than US dollar were translated
at the relevant annual average rate for the year ended 31 December
2017.
Summary report
Operation Country Taxes Royalties Total
US$'000 US$'000 US$'000
------------------------------------- ----------------------- -------- -------------- ------------
Letšeng Diamonds (Proprietary)
Limited Lesotho Botswana 229 17 887 18 116
Gem Diamonds Botswana (Proprietary)
Limited - 230 230
------------------------------------- ----------------------- -------- -------------- ------------
Total 229 18 117 18 346
===================================== ================================= ============== ============
Lesotho
Taxes US$'000 Royalties Total
Letšeng Diamonds (Proprietary) Limited US$'000 US$'000
============================================== ===================== ============ ===============
Lesotho Revenue Authority 229 - 229
Government of Kingdom of Lesotho - 17 887 17 887
============================================== ===================== ============ ===============
Botswana
Taxes US$'000 Royalties Total
Gem Diamonds Botswana (Proprietary) Limited US$'000 US$'000
============================================== ===================== ============ ===============
Government of Botswana - 230 230
============================================== ===================== ============ ===============
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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