Gem Diamonds Limited H1 2023 Trading Update (9927J)
22 August 2023 - 4:00PM
UK Regulatory
TIDMGEMD
RNS Number : 9927J
Gem Diamonds Limited
22 August 2023
22 August 2023
GEM DIAMONDS LIMITED
H1 2023 Trading Update
Gem Diamonds Limited (LSE: GEMD) ("Gem Diamonds" or the
"Company" or the "Group") provides the following Trading Update
detailing the Group's operational and sales performance from 1
January 2023 to 30 June 2023 ("H1 2023" or the "Period").
Highlights:
-- The highest price achieved during the Period was US$282 889
per carat for a 6.63 carat pink diamond, the third highest dollar
per carat achieved for a Letšeng rough diamond.
-- The highest price achieved during the Period for a white
diamond was US$34 441 per carat for a 58.07 carat Type IIa
diamond.
-- 12 diamonds sold for more than US$1.0 million each,
generating revenue of US$21.0 million during the Period.
-- Two diamonds greater than 100 carats were recovered during
the Period, one of which was sold in the Period and the other will
be sold in Q3 2023.
1. Letšeng Diamonds production summary:
H1 H2 %
2023 2022 Change
Waste tonnes stripped 4 846 680 3 864 465 25%
---------- ---------- ---------
Ore tonnes treated 2 467 250 2 488 912 (1%)
---------- ---------- ---------
Satellite pipe contribution
(tonnes) 1 269 987 1 659 562 (23%)
---------- ---------- ---------
Carats recovered 50 601 51 548 (2%)
---------- ---------- ---------
Grade recovered (cpht) 2.05 2.07 (1%)
---------- ---------- ---------
Carats sold 52 163 50 423 3%
---------- ---------- ---------
Total value (US$
millions) 71.6 88.9 (19%)
---------- ---------- ---------
Achieved US$/carat 1 373 1 765 (22%)
---------- ---------- ---------
2. Letšeng full year guidance:
During the Period increasing grid electricity interruptions
caused a reduction in volumes of ore processed. In addition, higher
than expected internal basalt dilution in certain domains of ore
that was treated impacted throughput.
To mitigate the impact of internal basalt dilution, improve
plant stability and large diamond recoveries, in the latter part of
Q2 2023, an operational decision to open crusher gaps and to slow
throughput in the processing plant was implemented. As a result,
full year guidance for tonnes treated has been revised down to 4.9m
- 5.1m tonnes. Initial results of these actions on plant stability
and recoveries have been positive.
Carats recovered and sold remain within original guidance due to
improved grade performance. The lower tonnes treated has however
impacted unit costs. Direct cash costs per tonne treated have been
revised to LSL285 - 305 per tonne treated and operating costs have
been revised to LSL380 - 395 per tonne treated.
3. Diamond market:
The global rough diamond market has experienced a downturn in
2023. A decrease in the number of large, high-value diamonds
recovered, combined with market pressure has negatively impacted
the average dollar per carat and revenue achieved during the
Period.
FOR FURTHER INFORMATION:
Gem Diamonds Limited
Kiki Constantopoulos, Company Secretarial department
ir@gemdiamonds.com
Celicourt Communications
Mark Antelme / Felicity Winkles
Tel: +44 (0) 207 770 6424
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
The Gem Diamonds Limited LEI number is 213800RC2PGGMZQG8L67.
ABOUT GEM DIAMONDS:
Gem Diamonds is a leading global diamond producer of large high
value diamonds. The Company owns 70% of the Letšeng mine in Lesotho
and is currently in the process of selling its 100% share of the
Ghaghoo mine in Botswana. The Letšeng mine is famous for the
production of large, exceptional white diamonds, making it the
highest dollar per carat kimberlite diamond mine in the world.
www.gemdiamonds.com
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