Gem Diamonds Limited Update on the future of the Ghaghoo mine (0565X)
February 16 2017 - 3:16AM
UK Regulatory
TIDMGEMD
RNS Number : 0565X
Gem Diamonds Limited
16 February 2017
16 February 2017
GEM DIAMONDS LIMITED
("Gem Diamonds" or "the Company")
UPDATE ON THE FUTURE OF THE GHAGHOO MINE
The Company's Board has decided that the Ghaghoo mine in
Botswana will be placed on care and maintenance with immediate
effect.
As previously announced, the development of the mine at Ghaghoo
has progressed well and has now reached the point where it will
shortly be in a position to commence full commercial production.
However, the material fall in the prices of its diamonds from US$
210 per carat in early 2015 to US$ 142 per carat at its most recent
sale in December 2016, emphasises the weak state of the diamond
market for this category of diamonds. With the Company's focus on
profitable production, the decision has been made to place the
asset on care and maintenance, and to continue to monitor market
conditions for a time when commencing full production would make
economic sense.
It is anticipated that, post once off settlement costs, this
will result in an annualised care and maintenance cost of US$ 3
million.
This announcement contains inside information for the purpose of
Article 7 of Regulation (EU) No596/2014
For further information:
Gem Diamonds Limited Celicourt Communications
Juliet Cox, Investor Relations Joanna Boon / Mark Antelme
Tel: +44 (0) 203 043 0280 Tel: + 44 (0) 207 520 9265
About Gem Diamonds: 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.
www.gemdiamonds.com
This information is provided by RNS
The company news service from the London Stock Exchange
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