Full Year Results for the year ended 31 December 2011

Back

20 Mar 2012

RECORD PROFITS AND POSITIONED FOR GROWTH
Gem Diamonds Limited (the Company) today announces its full year audited results for the period ending 31 December 2011.

Financial Highlights

  • Revenue of US$396 million, up 49% from 2010
  • Underlying EBITDA of US$180 million, up 119% 
  • Attributable net profit of US$68 million, up 235% 
  • Basic EPS (continuing operations) of 47 US cents, up 213% 
  • Cash on hand of US$159 million as at 31 December 2011 (US$142 million attributable to Gem Diamonds)

OPERATIONAL HIGHLIGHTS 

  • Letšeng record carat production of 112 367 carats, up 24% and recovered grade of 1.62 cpht, up 35% during 2011 
  • Board approval for US$280 million Letšeng production expansion project (Project Kholo) given in November 2011
  • 550 carat Letšeng Star sold in October 2011 into a partnership arrangement for US$16.5 million in the rough
  • Board approval for US$85 million for Phase I of the Ghaghoo mine development project in Botswana given in March 2011; project underway with 21% capital spent
  • Sales and marketing strategy delivering significant margin uplift
Commenting on the results today, Clifford Elphick, Chief Executive of Gem Diamonds, said:

"Gem Diamonds reports record results for the 2011 year, both operationally and financially. The record earnings per share and carat production at Letšeng were the result of the successful implementation of a series of strategic work streams and initiatives directed at improving operational efficiencies, managing and controlling mining costs and growing revenues through the "smart sale" of the Company's rough and polished diamond production. 2011 saw several exceptional diamond discoveries at Letšeng, including the 550 carat Letšeng Star and we continue to see strong demand for our high quality diamonds from both developed and emerging markets, despite the backdrop of challenging times for the global economy.

"Our clear focus is on generating value for shareholders from our core mining assets at Letšeng 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. We look forward with confidence to delivering value for our shareholders during the coming years." 
The Company will be hosting an analyst presentation on its full year results today, which will take place at 9.30am at The London Stock Exchange. A live audio webcast of the presentation will be available on the Company's website:www.gemdiamonds.com

For further information:
Gem Diamonds Limited

Clifford Elphick, Chief Executive Officer
Glenn Turner, Chief Commercial Officer
Tel: +44 (0) 203 043 0280

Sherryn Tedder, Investor Relations 
Tel: +27 (0) 11 560 9600 
Mob: +27 83 943 4505 

Kim O'Farrell, Media Relations 
Tel: +44 (0) 203 043 0280 
Mob: +44 (0) 77 6506 1316

20 Mar 2012 Full Year Results for the year ended 31 December 2011 (225KB PDF)