Gem Diamonds sales13.33 carat pink stone

A Letšeng record of

US$ 656 933 per carat

Gem Diamonds Limited provides Trading Update detailing of operational and sales performance for the Period Q1 2019 & says, Recovered and sold a 13.33 carat pink diamond for a Letšeng record of US$ 656 933 per carat. During the period Letšeng also recovered two diamonds greater than 100 carats.

Total Carats recovered of 29 458 during the Q1 were in line with guidance targets and with the previous period of Q4 2018 of 29 523 carats. On the other hand they sold 27 335 carats during the Period, achieving an average price of US$ 1 900 per carat is higher over the Q4 2018 which had recovered US$ 1 259 per carat. The period also registered sales of eight diamonds for more than US$ 1.0 million each, generating revenue of US$ 27.2 million during the Period.

The diamond detection pilot plant project remains on target to be commissioned at the end of Q2 2019. Construction and set-up have commenced on site. This project supports the continuing strategy of early detection of large diamonds and diamond damage reduction.

The Group remains on track to achieve its cumulative target of US$ 100 million in incremental revenue, productivity improvements and cost savings for the 4-year period to end 2021. Initiatives that have been implemented up to the end of the Period are expected to deliver over US$ 80 million of the targeted US$ 100 million.

The demand and prices for Letšeng's large high-quality white rough diamonds have remained firm. Waste stripping continued in line with the requirements of the updated long-term mine plan that incorporates the Business Transformation initiative to steepen inter-ramp slope angles. This initiative, which was implemented from 1 January 2019, has resulted in 1.5 million less waste tonnes being stripped during the Period when compared to the 2017 mine plan.

Full year 2019 guidance is maintained.