Full year results FOR THE PERIOD ENDING 31 DECEMBER 2015

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15 Mar 2016

Gem Diamonds Limited (the Company) is pleased to announce its Full Year Results for the year ending 31 December 2015 (the Period).

FINANCIAL RESULTS:

  • Revenue US$249.5 million, down 8% YoY
  • Underlying EBITDA US$103.5million, down 2% YoY
  • Profit for the year US$67.4 million, up 12% YoY
  • Attributable profit (post exceptional items) US$52.0 million, up 57% YoY
  • Earnings per share (pre exceptional items), 30.2 US cents, up 26% YoY
DIVIDEND
  • Ordinary dividend of 5 US cents per share recommended
  • Special dividend of 3.5 US cents per share also recommended
Commenting on the results today, Clifford Elphick, Chief Executive Officer of Gem Diamonds, said:

“It is pleasing to see that the prices achieved for Letšeng's diamonds during 2015 have remained robust despite the sharp downturn in the global market. The world class, high quality diamonds, for which Letšeng is renowned, have contributed to the strong results at an average price of US$2 299 per carat for the year.”

“Although 2015 was a challenging year for the diamond mining industry, it is encouraging to report that the Group has delivered a strong set of operational and financial results. The Group continued to implement its strategic objectives of capital discipline by investing in low cost high return capital projects. The increase in the recoveries of the important +100 carat diamonds from an average of 6 per year to 11 in 2015 demonstrates the success of the initiatives.”

The key objectives for the development of Phase 1 at the Ghaghoo mine have been achieved. In this regard, the average grade recovered during the year met the expected reserve grade and following the commissioning of the surge bin in January, the key metric of 2 000 tonnes per day through the processing plant was achieved.

The strong financial results achieved in 2015 have enabled the Board to recommend an ordinary dividend of 5 US cents per share and, in addition to this ordinary dividend have recommended a special dividend of 3.5 US cents per share. The special dividend relates to the cash saving arising from the settlement of a previous tax assessment.”

The Company will be hosting a webcast presentation on its full year results at 9.30am today. A copy of the full Annual Report 2015 and a live audio webcast of the presentation will be available on the Company's website: www.gemdiamonds.com

FOR FURTHER INFORMATION:
Gem Diamonds Limited

Juliet Kirk, Investor Relations
Tel: +44 (0) 20 3043 0280

Bell Pottinger

Daniel Thole / Anna Legge
Tel: +44 (0) 20 3772 2500

ABOUT GEM DIAMONDS:

Gem Diamonds is a leading global diamond producer of world class, high-value diamonds .The Letšeng mine is renowned for the production of large, top colour, exceptional white diamonds, making it the highest average dollar per carat kimberlite diamond mine in the world. Since Gem Diamonds acquired the Letšeng mine in 2006, it has produced four of the 20 largest white gem quality diamonds ever recorded.

Gem Diamonds has a growth strategy based on enhancing the operational efficiencies of Letšeng and developing the Ghaghoo mine, whilst maintaining its strong balance sheet. The Company seeks to maximise revenue and create additional margin from its rough diamond production through the Group’s expanded sales, marketing and manufacturing capabilities. With favourable supply/demand dynamics expected to benefit the industry over the medium to long term, particularly at the high end of the market supplied by Gem Diamonds, this strategy positions the Company well to generate attractive returns for shareholders in the coming years.

15 Mar 2016 Full Year results for the period ending 31 December 2015 (914KB PDF)