Gem Diamonds 2017 Revenue Up, Profits Down
March 15, 18
(IDEX Online) – Gem Diamonds Limited reported revenue of $214.3 million (US$189.8 million in 2016).
Profit for the year (pre-exceptional items) was $20.8 million (US$32.4 million in 2016).
After the exceptional items of $3.6 million, attributable profit was $5.5 million and earnings per share was 4.0 US cents.
Clifford Elphick, Chief Executive of Gem Diamonds, said: “The second half of 2017 saw the company begin to benefit from the operational improvements implemented during the year, with a significant improvement in the recovery of the large diamonds from Letšeng. The market for the mine’s large, high quality white rough diamonds remained strong over the course of 2017, a trend which has continued into early 2018.
"The Lesotho Legend sold for the remarkable sum of $40 million. This is believed to be the fifth largest gem quality diamond ever recovered and is testament to the world class caliber of the Letšeng mine.
"The focus on enhancing the efficiency of our operations identified a potential of $20 million of annualized and once-off efficiency and cost reduction initiatives at the end of last year. A target has now been set of obtaining $100 million of cash savings by the end of 2021, with an ongoing target of $30 million per year thereafter."