Gem Diamonds is a leading global diamond producer of high value diamonds. The company owns 70% of the Letšeng mine in Lesotho and 100% of the Ghaghoo mine in Botswana. The Letšeng mine is famous for the production of large, top colour, exceptional white diamonds, making it the highest dollar per carat kimberlite diamond mine in the world.
Gem Diamonds has a growth strategy based on enhancing the operating efficiencies of the Letšeng mine and bringing the Ghaghoo mine into production, while maintaining its strong balance sheet. The Company seeks to create additional value from its rough diamond production by pursuing cutting, polishing and sales and marketing initiatives further along the diamond value chain. With favourable supply/demand dynamics expected to benefit the industry over the medium to long term, particularly at the high end of the market supplied by Gem Diamonds, this strategy positions the Company well to generate attractive returns for shareholders in the coming years.
For more information on environmental management policy, health and safety management, corporate social responsibility and GRI reporting scorecards see www.gemdiamonds.com/sustainability.php
Financial year ends 31 December
Gem Diamonds owns 70% of Letšeng mine in a partnership with the Government of the Kingdom of Lesotho. At an average elevation of 3 100 metres (10 000 feet) above sea level, it is one of the highest diamond mines in the world. It is also the highest average dollar per carat kimberlite diamond mine in the world; in 2015 the average $/ct achieved was $2,299. Since Gem Diamonds acquired the mine in 2006, Letšeng has produced four of the 20 largest white gem quality diamonds ever recovered (Gem Diamond’s webpage on its famous diamonds).
Gem Diamonds is also developing the Ghaghoo mine in Botswana. It has built an underground mine through 80 vertical metres of sand overburden and has completed phase 1 of the development to confirming diamond grades and prices and testing different processing techniques. By the end of 2015 326 922 tonnes of ore had been treated, with 91 499 carats recovered, including a 48 carat diamond, and 30 +10.8 carat diamonds. Additionally small size fancy coloured diamonds were recovered confirming the presence of these valuable diamonds in the ore body.
Placed on care and maintenance in February 2017
Diamond Sales and Marketing:
Gem Diamonds has a multi-channel marketing strategy in which it sells by tenders, off-take arrangements and partnerships. There will be 8 tenders annually. Gem Diamond’s 100%-owned subsidiary, Baobab Technologies, is a high-tech diamond analysis and manufacturing operation which assists Gem Diamonds in valuing its exceptional rough diamonds and cuts and polishes selected diamonds for selling to prominent high-end diamantaires.
Reserves and Resources
As of 1st January 2015