Gem’s cost-cutting drive on track
LSE-listed Gem Diamonds continues with the successful implementation of its business transformation programme, which is aimed at achieving $100-million in incremental revenue, productivity improvements and cost savings to the end of 2021.
Reporting on the diamond miner’s results for the six months ended June 30, CE Clifford Elphick said last week the company had already achieved $42-million in cost savings, net of implementation costs and fees, over the first 18 months of the programme.
Meanwhile, Gem recorded revenue of $91.3-million for the interim period to June 30, compared with the $167.7-million earned in the six months to June 30, 2018.
Underlying earnings before interest, taxes, depreciation and amortisation were $25.3-million, down from $70.7-million in the prior comparable period.
Attributable profit from continuing operations decreased to $6.6-million from $26.8-million in the prior period.
Basic earnings per share also decreased to $0.05, compared with the $0.19 reported for the prior comparable period.
Gem, which owns 70% of the Letšeng mine, in Lesotho, is selling its 100% interest in the Ghaghoo mine, in Botswana. Care and maintenance costs of $2.4-million were incurred at Ghaghoo during the interim period.
Gem sold one 13.32 ct pink diamond recovered at Letšeng for $8.8-million – a record price of $656 934/ct.
Elphick noted that this reaffirmed the unique quality of Letšeng’s diamond production.
“The prices achieved for the period are 10% up from the prices achieved in the preceding six-month period, notwithstanding the planned limited contribution from the satellite pipe ore and current diamond market conditions.”
The company recovered three diamonds greater than 100 ct.
In terms of technology and innovation, construction of the pilot plant for detecting diamonds within kimberlite at Letšeng was completed, with commissioning and ramp-up planned for the third quarter of this year.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Sika South Africa is a trusted partner for the nation’s infrastructure, commercial, residential, and industrial sectors.
VISIT SHOWROOM
ECG provides specialised electrical engineering services to the Mining, Utilities, Materials Handling and Industrial industries, with extensive and...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
