Gem Diamonds Limited Letseng Operational Update (7351G)
August 10 2016 - 2:00AM
UK Regulatory
TIDMGEMD
RNS Number : 7351G
Gem Diamonds Limited
10 August 2016
10 August 2016
GEM DIAMONDS LIMITED
("Gem Diamonds" or the "Company")
Letšeng Operational Update - Weather Disruption
Extreme weather conditions have recently been experienced across
the Maluti Mountains in Lesotho, where the Letšeng Mine is located,
with excessive snow falls and severe winds limiting access to the
mine. Following damage to the overhead power lines, standby
generators installed at the mine have been used to mitigate some of
the impact, allowing the plants to operate, albeit at reduced
rates. The Lesotho Electricity Company (LEC) is currently on site
carrying out repairs to damaged overhead power lines. External
power supply is expected to be fully restored in the short
term.
Full Year guidance for ore tonnes treated and operating costs
may need to be re-assessed but due to the strong operational
performance in H1, carats recovered are not expected to be affected
materially.
The Board will provide an updated view of the current year's
operational guidance with the announcement of the Company's Half
Year Results. Full Year carats recovered will likely be within
original guidance.
Letšeng has provided accommodation and food to approximately 250
local people who were unable to cope during the severe weather. The
Deputy Prime Minister and a government delegation have visited the
mine and thanked the management for its assistance to villagers
during this difficult period.
Notification of Half Year Results
Gem Diamonds Ltd (LSE: GEMD) will announce its Half Year Results
for the period ending 30 June 2016 on Wednesday, 17 August 2016 at
0700 BST.
The Company will host an audio presentation following the
announcement at 0930 BST.
The live audio webcast of this presentation will be available to
view via the Company's website: www.gemdiamonds.com
For further information:
Gem Diamonds Limited
Juliet Kirk, Investor Relations
Tel: +44 (0) 203 043 0280
Celicourt Communications
Joanna Boon/Mark Antelme
Tel: +44 (0) 207 520 9261
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.
Gem Diamonds has a growth strategy based on the expansion of the
Letšeng mine and bringing the Ghaghoo mine into production, while
maintaining its strong balance sheet. The Company seeks to maximise
revenue and margin from its rough diamond production by pursuing
cutting, polishing and sales and marketing initiatives further
along the diamond value chain. 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.
www.gemdiamonds.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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