Gem Diamonds (LON:GEMD) saw its revenues and earnings rise significantly in 2011 as production at its flagship Letseng mine in Lesotho reached record levels.
The diamond miner said its EBITDA jumped 119 percent to US$180 million, while earnings per share more than tripled from 15 cents to 47 cents as revenues advanced 49 percent to US$396 million.
The increase in revenues came as production at Letseng rose 24 percent to 112,367 carats, while recovered grades improved 35 percent to 1.62 carats per hundred tonnes.
During the year, the group approved a US$280 million expansion project at Letseng and another US$85 million for Phase I of the Ghaghoo mine development project in Botswana, which is currently underway.
“Gem Diamonds reports record results for the 2011 year, both operationally and financially,” said chief executive of Gem Diamonds Clifford Elphick.
“Our clear focus is on generating value for shareholders from our core mining assets at Letseng and Ghaghoo.
“The US$280 million expansion project at Letšeng will confirm its position as the world's leading producer of high quality diamonds and the Ghaghoo mine development project in Botswana is also well under way.”
Shares in Gem Diamonds rose one percent to 283.5 pence this morning, valuing the group at £392 million.