News Bureau

Gem Diamonds bags good profit in 2018

Gem Diamonds Limited announces its Full Year Results for the year ending 2018 with revenue of US$267.3 million over US$214.3 million in 2017. Profit for the year 2018 registered of US$46.6 million is far better over US$20.8 million before exceptional items in 2017.

According to Gem Diamonds, Letšeng recovered of 126 875 Carats in 2018 over the previous 2017 of 111 811carats. During the year 2018, about fifteen diamonds that recovered larger than 100 carats each while it was just a 7 stones in 2017.

138.28 carat white diamond achieved US$ 60 428 per carat, the highest dollar per carat achieved for a white rough diamond during the year. The management thanks to technology and innovation that installation of non-mechanical diamond liberations at Letšeng and that also enable to set US$3m pilot plant to detect diamonds within kimberlite at Letšeng on track to be commissioned during Q2 2019.

Yet, the Board has resolved not to propose the payment of a dividend in respect of the 2018 financial year and ongoing focus on the Business Transformation, in order to strengthen the balance sheet. Commenting on the results, Clifford Elphick, Chief Executive of Gem Diamonds said: "Gem Diamonds achieved a good set of results, characterised by the recovery of 15 diamonds greater than 100 carats, a record for a single calendar year. Production in 2018 also included the highest recovery of diamonds greater than 20 carats, with 80% of revenue primarily generated by diamonds greater than 10 carats.

The Business Transformation process has progressed well and remains on-track to achieve the target of US$100 million in cost savings and efficiencies by 2021. By December 2019, the initiatives already implemented are expected to deliver US$64 million to the end of 2021."

What's your reaction? 0% 0% 0%