Gem Diamonds Limited (LSE: GEMD) (“Gem Diamonds”, the “Company” or the “Group”) announces its Full Year Results for the year ending 31 December 2021 (the “Period”).
- Revenue of US$201.9 million (US$189.6 million in 2020)
- Underlying EBITDA from continuing operations of US$57.4 million (US$53.2 million in 2020)
- Profit for the year from continuing operations US$31.1 million (US$27.5 million in 2020)
- Attributable profit from continuing operations US$18.5 million (US$16.9 million in 16.9)
- Earnings per share from continuing operations 13.2 US cents (12.1 US cents in 2020)
- Cash on hand of US$31.1 million as at 31 December 2021 (US$23.5 million attributable to Gem Diamonds)
- Ordinary dividend of 2.7 US cents per share proposed by the Directors and subject to approval by the shareholders at the 2022 AGM
- The dividend will be paid on 21 June 2022 to shareholders who are on the register of members on the record date of 20 May 2022 (ex-div date 19 May 2022)
- Carats recovered of 115 335 (100 780 carats in 2020)
- Waste tonnes mined of 18.7 million tonnes (15.6 million tonnes in 2020)
- Ore treated of 6.2 million tonnes (5.4 million tonnes in 2020)
- Average value of US$1 835 per carat achieved (US$1 908 in 2020)
- The highest dollar per carat achieved for a white rough diamond during the year was US$47 574 per carat
One of the Group’s priorities in 2021 was to safeguard its employees, contractors and surrounding communities from COVID-19 and, in doing so, it was able to operate uninterrupted throughout the year. Almost 100% of the Group’s workforce has now been fully vaccinated against COVID-19.
TCFD and Climate
The Group adopted the recommendations of the Task Force on Climate-related Financial Disclosures during the year and concluded Phase 1 of its three-year TCFD roadmap. The Group took a measured and science-based approach to conclude its Group-wide climate change scenario analysis and to develop a climate change strategy, and will continue to do so while setting targets, metrics and setting its decarbonisation strategy.
Commenting on the results today, Clifford Elphick, Chief Executive Officer of Gem Diamonds, said:
“Gem Diamonds has delivered positive operational and financial results notwithstanding the continued challenges brought about by the COVID-19 pandemic on the availability of skills, equipment, spares and other aspects of the supply chain. One of our priorities remains the safety of our employees, contractors and surrounding communities and we are pleased that we were able to assist the Lesotho Government in its fight against COVID-19 with a donation of 20 000 vaccines and a new 4x4 ambulance capable of reaching remote communities. To date, nearly 100% of the Group’s workforce has been vaccinated.
The Group has continued with its climate change journey and we’re pleased with the progress made in 2021. Our science-based approach will stand us in good stead over the coming years in managing the physical and transition risks. We are also continuing to explore the opportunities that climate change might bring to our operations.
The continuing recovery of the diamond market in 2021 was evidenced by the robust prices achieved for Letšeng’s large, high-value diamonds and there was also a significant improvement in the prices achieved for smaller diamonds. This resulted in positive cash flows and allowed Gem Diamonds to end the year in a strong financial position.
We are pleased to announce that based on the results achieved in 2021, the Board has proposed the payment of an ordinary dividend of 2.7 US cents per share.”
The Company will host a live audio webcast presentation of the full year results today, 17 March 2022, at 9:30 GMT. This can be viewed on the Company’s website: www.gemdiamonds.com
The page references in this announcement refer to the Annual Report and Accounts 2021, which can be found on the Company’s website: www.gemdiamonds.com.
The Gem Diamonds Limited LEI number is 213800RC2PGGMZQG8L67
FOR FURTHER INFORMATION:
Gem Diamonds Limited
Mark Antelme / Felicity Winkles
Tel: +44 (0) 208 434 2643
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. 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.