LSE-listed Gem Diamonds has announced its Full Year Results for the year ending 31 December 2018 - highlighting a Revenue of US$267.3 million.
Commenting on the results CEO, Clifford Elphick, says:
“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 mine plan for Letšeng was revised during 2018, with the aim of further reducing the waste stripping through the steepening of inter-ramp slope angles.
"Mining in accordance with this plan has commenced and is expected to significantly increase the net present value of the mine.
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.”
- Revenue of US$267.3 million (US$214.3 million in 2017)
- Underlying EBITDA of US$82.3 million (US$48.6 million before exceptional items in 2017)
- Profit for the year US$46.6 million (US$20.8 million before exceptional items in 2017)
- Attributable profit US$26.0 million (US$9.1 million before exceptional items in 2017)
- Earnings per share 18.80 US cents (6.56 US cents before exceptional items in 2017)
- Cash on hand of US$50.8 million as at 31 December 2018 (US$43.3 million attributable to Gem Diamonds)
- Carats recovered of 126 875 (111 811 in 2017)
- Waste tonnes mined of 25.8 million tonnes (29.7 million tonnes in 2017)
- Ore treated of 6.5 million tonnes (6.4 million in 2017)
- Average value of US$2 131 per carat achieved (US$1 930 in 2017)
- Record fifteen diamonds larger than 100 carats each recovered (seven in 2017)
- 138.28 carat white diamond achieved US$ 60 428 per carat, the highest dollar per carat achieved for a white rough diamond during the year
Technology and innovation:
- Installation of non-mechanical diamond liberations at Letšeng
- US$3 million pilot plant to detect diamonds within kimberlite at Letšeng on track to be commissioned during Q2 2019
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.