Highlights
Revenue for the Period was
Average price achieved for the Period was
Carats sold during the Period were 29 298 (Q4 2019: 29 945).
11 diamonds sold for more than
Covid-19
On
In accordance with the Lesotho Government's three-week lockdown strategy and published regulations, and in support of its efforts to curb the spread of the Covid-19 virus, LetSeng has temporarily suspended operations and placed the mine on care and maintenance. This will be reviewed when the lockdown period has ended, and steps are in place for operations to resume as soon as it is safe for the Group's employees and contractors to do so.
The Group has implemented a wide range of necessary precautions to protect its people and to date there have been no reported cases of Covid-19 at any of the Group's offices or sites. Measures implemented include staff working remotely, the provision of all necessary Personal Protective Equipment (PPE), hand washing and the provision and use of effective hand sanitisers, appropriate social distancing at all times, compulsory screening for all persons entering any of the Group's sites and mining operations and on-going daily screening for all personnel on site at LetSeng, limiting non-essential travel and compliance with any additional regulatory restrictions imposed by the relevant Governments of the various jurisdictions in which the Company operates.
The Company has been engaging extensively with the Lesotho Government and medical services providers in order to assist with the provision of testing facilities and has provided a mobile office unit to the
Due to the travel and other restrictions imposed by various governments (particularly
Significant operating and capital cost reduction measures are being implemented during this lockdown and care and maintenance period and a restart and ramp up plan is being finalised to commence operations as soon as it is permissible and safe to do so.
In light of the change in circumstances which were rapidly brought on by the Covid-19 crisis, the Company is currently assessing the full extent of the operational and financial impacts. An updated 2020 guidance will be provided once this process is completed.
Corporate and Financial
The Group ended the Period with
The Group has available additional facilities of
The Group has performed extensive cash flow planning for the lockdown period, including a period to facilitate ramp-up to full production. This has confirmed that the Group's cash on hand, together with its available facilities, flexible tender sale process and implemented cost cutting measures are sufficient to withstand the lockdown period and the anticipated ramp up to full production.
In order to assist with the cash flows during the above periods, salary reductions for management levels have been introduced across the Group ranging from 20% for the Chairman of the Company's Board, all Board Directors and senior executives, down to 15% and 10% across various management salary bands. In addition, scheduled salary increases for Directors and executive management at Group level have been postponed.
The process to dispose of Ghaghoo remains subject to regulatory approvals in
At Period end,
Gem Diamonds' CEO,
LetSeng's mining progressed well during the Period and we are confident that the mine will be able to rapidly ramp-up to full production once the lock-down period is lifted and it is safe for all our employees and contractors to return to site. The positive results of the flexible tender sales process demonstrated the continued demand for LetSeng's high quality diamonds with the average price of
Prices for LetSeng's diamonds have been negatively impacted in
Includes carats produced from the LetSeng Plants, the
Waste stripping continued in line with the requirements of the updated long-term mine plan that incorporates the steeper inter-ramp slope angles. LetSeng's Plants treated a total of 1.3 million tonnes of ore during the Period with the remaining balance of 0.2 million tonnes treated through the
Mining and treatment volumes were impacted during the Period primarily by drill rig availability issues, testing of different blasting parameters, additional maintenance to the tertiary cone crusher and scrubber drive-arrangement in Plant 2 and further remedial work and maintenance to the primary crushing area (the PCA). The remedial work and continued maintenance to the PCA has extended its life and thereby deferred planned capital associated with the required replacement of this facility. In addition, towards the end of the Period, the mining and treatment volumes have been impacted as a result of the lockdown and the placing of the mine temporarily on care and maintenance which commenced on
Health, Safety, Social and Environment (HSSE)
During the Period, no LTI's occurred, and the Group-wide All Injury Frequency Rate was 0.32.
No major or significant community or environmental incidents occurred across the Group during the Period.
Contact:
Tel: +44 (0) 208 434 2643
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.
ABOUT GEM DIAMONDS
Gem Diamonds is a leading global diamond producer of high value diamonds. The Company owns 70% of the LetSeng mine in
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