Gem ‘benefits’ from recovery in rough, polished diamond prices

Gem Diamonds said it continues to ‘benefit” from the recovery in rough and polished diamond prices and from the implementation of its sales and marketing strategies.
Although no figures were given to support the claim, the company had stated in its Interim Management Statement for April that the Gem Diamonds Price Index went up some 7 percent in 2012.
Company non-executive chairman Roger Davis said in a shareholder briefing emailed to Rough & Polished that both Letšeng’s run of mine production and Ellendale’s fancy yellow diamonds had achieved robust prices.
He also said that Gem Diamonds had maintained its focus on exploiting key opportunities for growth.
“In line with this, we advanced two major development projects during the year that will see us unlock considerable value from our asset portfolio,” Davis said.
“In November 2011, the Board approved a production expansion plan known as Project Kholo at the Letšeng mine which will lead to almost doubling the mine’s own mining and treatment capacity when the project is completed at the end of 2013.”
He said the Letšeng mine continued to produce exceptionally large, high value diamonds during the period, supporting our investment decision.
Meanwhile, Davis said the development of Phase 1 of the Ghaghoo mine in Botswana, which commenced in July 2011 continued to progress on time and within budget.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished