Full year results for the year ending 31 December 2013Back
18 Mar 2014
Gem Diamonds Limited (the Company) is pleased to announce its Full Year results for the period ending 31 December 2013.
Gem Diamonds’ focus for 2013 remained on initiatives to reduce diamond damage at its LetÅ¡eng mine in Lesotho, and this has resulted in a significant reduction in diamond damage; and the development of the Ghaghoo mine in Botswana, which has made good progress and is on-track for commercial production commencing in the second half of 2014. The technological and strategic investments made during the year, together with a more stable diamond market resulted in revenue of US$213 million generated from the sale of 97 294 carats from LetÅ¡eng (an increase of 5% compared to revenue of US$202 million from the sale of 107 617 carats in the prior year) and underlying EBITDA of US$77 million (up 18% from US$66 million in 2012).
The Company remains focused on optimising its core operations and developing the Ghaghoo mine.
- Revenue US$213 million, up 5%
- Underlying EBITDA US$77 million, 18%
- Attributable net profit US$21 million, up 23%
- Basic EPS US cents 15.3, up 24%
- Cash on hand US$71 million as at 31 December 2013 (net after debt); (US$63 million attributable to Gem Diamonds)
- Carats recovered ofÂ 95 053
- Average US$ per carat US$2 043*
- Tonnes treated 6.2 million
- Waste tonnes moved 19.1 million tonnes
- 12.47 carat blue diamond sold for US$7.5 million, a LetÅ¡eng record of US$603 047 per carat
- LetÅ¡eng achieved a 5 star rating in external HSSE audit
*includes carats extracted for polishing at rough valuation
- Construction of the sand portion of the access decline completed
- Extension of the main decline into basalt commenced
- Construction of the processing plant ready for final commissioning.
- Kimberlite intercepted
- US$71.2 million (of a total of US$96 million Phase 1 capital budget) spent as at 31 December 2013
- Ghaghoo maintained its 4 star rating in external HSSE audit
- Complete development of Ghaghoo, with production commencing H2 2014.
- Mining in Satellite pipe continues in 2014.
- Decreased diamond damage delivers increased revenue
- Coarse recovery plant project commenced
- Strong diamond market with improved prices seen in Q4 2013 continuing into Q1 2014.
Commenting on the results today, Clifford Elphick, Chief Executive Officer of Gem Diamonds, said:
“I am delighted that the Company is able to report a pleasing set of results for 2013, during which good progress was made on all strategic initiatives, including the reduction of diamond damage at LetÅ¡eng. Operations in 2014 have begun well and we are looking forward to bringing the Ghaghoo mine into production in H2.
I am pleased to report that the Board of Directors has the intention of paying a maiden dividend to shareholders at the end of the 2014 financial year, based on the Group’s strong balance sheet and the anticipated performance of the Company’s operations.”
The Company will be hosting an analyst presentation on its full year results today, which will take place at 9.30am at 60 Cannon Street. A copy of the full Annual Report 2013 and a live audio webcast of the presentation will be available on the Company's website:Â www.gemdiamonds.comÂ
For further information:
Gem Diamonds Limited
Sherryn Tedder, Investor Relations
Tel: +27 (0) 11 560 9600
Charles Vivian / James MacFarlane
+44 (0) 20 7861 8555
Tel: +44 (0) 20 7861 3232
ABOUT GEM DIAMONDS
Gem Diamonds is a leading global producer of high value diamonds. The Group currently has one producing mine, the LetÅ¡eng mine in Lesotho, and is developing the Ghaghoo mine in Botswana. The LetÅ¡eng mine is renowned for its regular 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 mine in 2006, LetÅ¡eng has produced four of the 20 largest white gem quality diamonds ever recorded.
Gem Diamonds has an organic growth strategy based on enhancing the operating efficiencies of the LetÅ¡eng mine and developing the Ghaghoo mine.