Gem Diamonds 2011 Net Profit Up 213%

The Letšeng Star

Among the factors contributing to the improved results was record carat production from the Letšeng mine. The mine produced 112,367 carats during the year, an increase of 24 percent over 2010. In addition, the recovered grade of 1.62 cpht was up 35 percent during the year.

The sale of the 550-carat Letšeng Star in October into a partnership arrangement for $16.5 million also helped the company’s bottom line.

“The record earnings per share and carat production at Letšeng were the result of the successful implementation of a series of strategic work streams and initiatives directed at improving operational efficiencies, managing and controlling mining costs and growing revenues through the 'smart sale' of the company’s rough and polished diamond production,” said Gem Diamond’s chief executive Clifford Elphick.

“The $280 million expansion project at Letšeng will confirm its position as the world’s leading producer of high quality diamonds and the Ghaghoo mine development project in Botswana is also well under way. We look forward with confidence to delivering value for our shareholders during the coming years,” Elphick added.