07:00 Thu 22 Apr 2021
Gem Diamonds Limited - Q1 2021 Trading Update
GEM DIAMONDS LIMITED
Q1 2021 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
Highlights:
· Carats produced during the Period were 29 010 (Q1 2020: 26 110).
· Revenue for the Period was
· Average price achieved for the Period was
· Carats sold during the Period were 26 916 (Q1 2020: 29 298).
· 5 diamonds sold for more than
· The 2021 production guidance, as reported on
Covid-19:
· The Group continues to meticulously implement its wide range of Covid-19 protocols, health and safety measures and other precautions to protect its employees and contractors at its operations. This has had a positive effect in containing infections across the Group and has allowed operations to continue in a safe and responsible manner.
· The Group continues to provide support to its workforce, contractors and surrounding communities in its efforts to curb the spread of the virus in all countries where it operates.
Corporate and Financial:
· The Group ended the Period with
· The Group had undrawn and available facilities of
· During the Period, Letšeng paid the remaining dividend of
· During the Period, Letšeng settled its 2020 income tax obligations resulting in a
· The targeted
· The process to sell Ghaghoo continues.
Gem Diamonds' CEO, Clifford Elphick, commented:
"It is pleasing to see that carat production during the Period was up some 11% on the same period in 2020 and that the average price of
It is anticipated that the mining mix should improve over the coming months as the richer parts of the Satellite pit are accessed in accordance with the mine plan."
1. Diamond Market
Prices achieved for Letšeng's diamonds reflected the continued improvement in market conditions, with prices achieved in the Period, on a like-for-like basis, higher than those achieved during the latter part of 2020.
2. Letšeng
2.1. Rough diamond sales
|
Q1 2021 |
Q1 2020 |
% Change |
Carats sold |
26 916 |
29 298 |
-8% |
Total value (US$ millions) |
43.9 |
47.3 |
-7% |
Achieved US$/carat |
1 630 |
1 615 |
+1% |
2.2. Production
|
Q1 2021 |
Q1 2020 |
% Change |
Waste tonnes stripped |
4 929 683 |
4 835 113* |
+2% |
Ore tonnes treated |
1 523 103 |
1 454 754* |
+5% |
Satellite pipe contribution (tonnes) |
765 363 |
638 880 |
+20% |
Carats recovered1 |
29 010 |
26 110* |
+11% |
Grade recovered (cpht)1 |
1.90 |
1.79 |
+6% |
1 Includes carats produced from the Letšeng Plants, the Alluvial Ventures (AV) plant and the recovery tailings treatment facility.
*In the prior period and in compliance with the Lesotho Government's lockdown order, Letšeng temporarily suspended operations between 28 March and
Waste stripping continued in line with the requirements of the updated long-term mine plan to ensure the future availability of ore and incorporates the steeper inter-ramp slope angles. During the Period, a total of 4.9 million tonnes of waste material was mined.
Letšeng's Plants treated a total of 1.3 million tonnes of ore during the Period of which 0.8 million tonnes were sourced from the Satellite pipe and 0.5 million from the Main pipe. In addition, 0.2 million tonnes were treated through the Alluvial Ventures contractor plant.
Following the operational performance in Q1, the 2021 production guidance, as reported on
3. Health, Safety, Social and Environment (HSSE)
During the Period, 1 LTI occurred, and the Group-wide All Injury Frequency Rate was 0.82.
No major or significant community or environmental incidents occurred across the Group during the Period.
FOR FURTHER INFORMATION:
Gem Diamonds Limited
Susan Wallace, Company Secretarial department
Celicourt Communications
Mark Antelme / Ollie Mills
Tel: +44 (0) 208 434 2643
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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