|Gem Diamonds Limited has published its Full Year Results for the year ending 31 December 2016, reporting revenue of US$189.8 million, down almost 24 percent compared with the previous year's result.
Profit was also down by a little over 50 percent compared with the previous year, reaching US$32.3 million.
Commenting on the results, Gem Diamonds Chief Executive Clifford Elphick noted that a decline in 2016 in the recovery of the larger diamonds of greater than 100 carats from the Letšeng operation in Lesotho had impacted revenue and cash flow for the year, but that this variability in the recovery rate was not unexpected.
Says Elphick: "Based on a detailed geological understanding of the resource, we remain confident that Letšeng will continue to produce exceptional diamonds."The company's fully-owned Ghaghoo mine in Botswana has been placed on care and maintenance as of February 2017 due to low prices achieved for the category of diamonds produced there, which are generally smaller, lower-value stones (average per carat achieved in 2016: US$152, down from the average of US$210 per carat achieved in early 2015). The company's Chief Executive notes that operations can be restarted when prices for that category of diamonds recover.