Gem Diamonds Q4 sales up by 9%
Gem Diamonds Trading of the Group's operational and sales performance for Q4 2018 says, Letšeng recovered three greater than 100 carat diamonds during the Period, bringing the number of diamonds greater than 100 carats recovered during 2018 to fifteen, a record for the Company.
Carats recovered during 2018 increased by 13% to 126 875 carats over the 2017 that had recovered 111 811 carats, whereas Gem Diamonds Sold 33140 carats during the Period gone up 9% from Q3 2018. Sold nine diamonds for more than US$ 1.0 million each, generating revenue of US$ 14.6 million during the Period.
This resulted in 44 diamonds being sold for more than US$ 1.0 million each during 2018, generating revenue of US$ 137.2 million. Achieved an average price of US$ 2 131 per carat for 2018, up 10% from US$ 1 930 per carat in 2017.
Subsequent to Period end, strong pricing was achieved at the first tender of 2019, with an average price of US$2004 per carat. Gem Diamonds' CEO, Clifford Elphick, commented, "The large diamond recoveries continued during the Period with three diamonds greater than 100 carats being recovered, resulting in the highest number of these recoveries in a single calendar year. Production in 2018 also included a record number of diamonds greater than 20 carats being recovered in a single year.
The revised mine plan results in a significant reduction in Letšeng's overall stripping ratio due to steeper slope angles, which is expected to result in a significantly improved NPV of the mine.
Good progress has been made on the business transformation process which remains on track to achieve its cumulative 4-year target of US$ 100 million, with already implemented initiatives expected to deliver US$ 60 million over the 4-year target period."