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REG - Gem Diamonds Limited - H1 2023 Trading Update

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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 (mailto: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 (http://www.gemdiamonds.com)

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