Gem Diamonds has provided a Trading Update detailing the Group’s operational and sales performance from 1 July 2020 to 30 September 2020 (Q3, 2020).
Gem Diamonds’ CEO, Clifford Elphick, comments:
“The average price of US$2 215 per carat for the Period demonstrates the improved demand for Letšeng’s high quality large diamond production.
“These prices achieved (on a like for like basis) are higher than those realised in the pre COVID-19 market conditions of H2 2019.
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“This, together with the continued pro-active cost control and cash preservation measures implemented across the Group, has resulted in continued positive cash flow for the Group.
“We are also pleased that Letšeng has returned to normal operating activities post the lockdown period, with waste mining activities ramping up from July.
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“Gem Diamonds continues to ensure that the Group’s safety protocols relating to COVID-19 are strictly adhered to and that appropriate support is provided to our employees and communities.’’
- The Group further reduced its net debt position by US$6.6 million, ending the Period in a net cash position of US$1.1 million (H1 2020: net debt US$5.5 million).
- In addition, US$29.8 million of the September tender proceeds were received after Period end and is excluded from the reported net cash position.
- Average price achieved for the Period was US$2 215 per carat (H1 2020: US$1 714* per carat).