Gem Diamonds Limited (LSE: GEMD) (“Gem Diamonds”, the “Company” or the “Group”) announces its Full Year Results for the year ending 31 December 2016 (the “Period”).


  • Revenue of US$189.8 million (US$249.5 million in 2015)
  • Underlying EBITDA of US$62.8 million (US$103.5 million in 2015)
  • Profit for the year US$32.3 million (US$67.4 million in 2015)
  • Attributable profit (before exceptional items) US$17.7 million (US$41.8 million in 2015)
  • Earnings per share (pre exceptional items), 12.8 US cents (30.2 US cents in 2015)
  • After the exceptional items of US$176.5 million non-cash impairments relating mainly to the decision to place Ghaghoo on care and maintenance, attributable loss of US$158.8 million and basic loss per share of 114.9 US cents
  • Cash on hand of US$30.8 million as at 31 December 2016 (US$28.5 million attributable to Gem Diamonds)


  • Carats recovered of 108 206 (108 579 in 2015)
  • Waste tonnes mined of 29.8 million tonnes (24.0 million tonnes in 2015)
  • Ore treated of 6.6 million tonnes (6.7 million in 2015)
  • Average value of US$1 695* per carat achieved (US$2 299* in 2015) due to fewer +100 carat diamonds recovered
  • 34 rough diamonds achieved a greater value than US$ 1.0 million each
  • Five diamonds larger than 100 carats each recovered (Eleven in 2015)
  • 11.8 carat pink diamond, sold for US$187 700 per carat, making it the third highest price per carat sold by Letšeng
  • The largest recovered diamond was a 160.2 carat Type II white diamond
  • Development of access to Level 2 completed
  • VKMain phase on Level 1 successfully sampled and processed
  • Ore treated of 217 372 tonnes (326 922 in 2015)
  • Carats recovered of 40 976 (91 499 in 2015)
  • Average value of US$152 per carat achieved (US$162 per carat in 2015)
  • Total sales of US$7.2 million for 47 266 carats sold
  • Operation placed on care and maintenance in February 2017 due to low prices achieved for this category of diamonds
  • The Board has resolved not to propose the payment of a dividend in respect of the 2016 financial year

Commenting on the results today, Clifford Elphick, Chief Executive of Gem Diamonds, said:

“Letšeng has performed well operationally and achieved all production metrics within targets and guidance. Demand and prices achieved for the large, high quality diamonds recovered from Letšeng have remained firm, but the decline in 2016 in the recovery of diamonds larger than 100 carats has had a disappointing impact upon revenue and cash flow. This recovery rate is consistent with the normal, short term variability of the resource. Based on a detailed geological understanding of the resource, we remain confident that Letšeng will continue to produce exceptional diamonds.
At Ghaghoo, solid progress was made developing the mine. Given the low prices achieved for this category of diamonds, the mine was placed on care and maintenance in February 2017. Ghaghoo provides Gem Diamonds with flexibility to restart operations, when prices for this category of diamonds recover.
The supply demand fundamentals for the diamond industry remain strong. Focus in 2017 will be on cash generation. At Letšeng, the implementation of the updated life of mine plan is expected to improve cash flows through an optimised waste mining profile.”

The Company will host a live audio webcast presentation of the full year results today, 15 March 2017, at 09:30 GMT. This can be viewed on the Company’s website: www.gemdiamonds.com

For further information:
Gem Diamonds Limited


Celicourt Communications

Joanna Boon / Mark Antelme
Tel: +44 (0) 207 520 9265

About Gem Diamonds:

Gem Diamonds is a leading global diamond producer of high value diamonds. The Company owns 70% of the Letšeng mine in Lesotho and 100% of the Ghaghoo mine in Botswana. The Letšeng mine is famous for the production of large, top colour, exceptional white diamonds, making it the highest dollar per carat kimberlite diamond mine in the world. Since Gem Diamonds’ acquisition of Letšeng in 2006, the mine has produced four of the 20 largest white gem quality diamonds ever recorded. The Ghaghoo mine in Botswana has been placed on care and maintenance until market conditions allow for recommencement of production.