• GEM DIAMONDS
  • UNITED KINGDOM
  • BELGIUM
  • LESOTHO
  • BOTSWANA
  • SOUTH AFRICA

GEM DIAMONDS

United Kingdom

Belgium

LESOTHO

Botswana

SOUTH AFRICA

Our strategy

HOW WE CREATE VALUE

(Tap a section below for more information)

Mining

Letšeng

Letšeng, our core diamond mine, is the highest achieving average US$ per carat kimberlite mine in the world. The operation is an open pit diamond mine with two kimberlite pipes, the Main pipe and the Satellite pipe which are 17.0 and 5.2 hectares respectively.

Ghaghoo

The Ghaghoo mine, which produces diamonds of a commercial quality, is currently on care and maintenance.

Processing

At Letšeng, ore is processed through three treatment plants with an annual throughput of 6.4 million to 6.6 million tonnes. Although Letšeng’s grade recovery is low (averaging just under two carats per hundred tonnes) it is famous for producing large, high-value diamonds.

Sales,
marketing and
manufacturing

Our diamonds produced are predominantly sold through a tender process by our sales and marketing operation in Antwerp, Belgium. Through mapping and analysis, the value of the Letšeng high-quality diamonds is determined and used to achieve the highest rough value through multiple selling channels. A selection of high-value diamonds are manufactured to capture additional value through polished sales.


Our strategy is underpinned by three key priorities which we believe will deliver maximum value for all shareholders through our cycle.


1.
Extracting
Maximum Value
from
Operations

Driving business optimisation through the cycle by enhancing the efficiency of our operations through stringent cost control and capital discipline, and selling non-core assets

Building balance sheet strength

Exploring new sales avenues to maximise value

The Group remains committed to maximising the value achieved on rough and polished diamond sales.
Underlying EBITDA gives insight to cost management, production, growth and performance efficiency on a like-for-like basis. We are focused on reducing operating costs, increasing productivity, and extracting maximum value from our operations.
ROACE is a pre-tax measure of the efficiency with which the Group generates operating profits from its capital.
The aim of our strategy is to deliver maximum value for all shareholders through our business cycle. Basic EPS represents profit attributable to equity shareholders and is a measure of the Group's profitability taking into account changes in the equity structure.
Cash generated from operating activities measures the cash-generating capability of the Group. It provides additional insight into how costs are managed thereby increasing efficiency and productivity, building balance sheet strength through stringent cost control.
The aim of our strategy is to deliver maximum value for all shareholders through our business cycle. Ore tonnes treated measures the level of operating activity of the business to achieve this objective.
The aim of our strategy is to deliver maximum value for all shareholders through our business cycle. Carats recovered measures the level of earnings activity of the business to achieve this objective.

Improved recovery of diamonds greater than 100 carats - recovered 10 diamonds greater than 100 carats during the first six months of 2018 including 910 carat Lesotho Legend

Commenced Business Transformation process during the last quarter of 2017, targeting US$100 million cumulative revenue, cost savings and productivity improvements by 2021, with implemented initiatives contributing US$47 million as at July 2018

Placed Ghaghoo mine on care and maintenance with formal sale process to underway

Expanded sales avenue for Letšeng large diamonds with additional tender viewings being held in Tel Aviv, Israel

Improved net cash position from US$1.4 million at 31 December 2017 to US$29.8 million at 30 June 2018

2.
Working
Responsibly
and Maintaining
Social
Licence

Promoting a culture of zero harm and responsible care

Delivering sustainable returns for our investors while optimising the benefit for our communities and minimising our impact on the environment

Building long-term, transparent and mutually beneficial relationships with stakeholders

Prioritise organisational health through areas identified during the Business Transformation process

The Group is committed to promoting a culture of zero harm and responsible care.
Zero major or significant community incidents.
Zero major or significant environmental incidents.
Invested US$0.5 million in corporate social projects during 2017 and continued to build positive relationships with stakeholders and project affected communities (PACs).

Fatality-free first six months of 2018

Zero major or significant incidents of health, safety, social and environmental (HSSE) legal non-compliance first six months of 2018

Zero major or significant community or environmental incidents for the first six months of 2018

Positive progress on health priority practices conducted as part of the Business Transformation process

Flagship dairy farming project formally opened

Egg farming project underway

3.
Preparing
for Our
Future

Advancement of innovative technologies to enhance revenues and reduce costs through reduction of diamond damage

Early renewal of the mining lease at Letšeng which expires in 2024

External growth opportunities assessed against strict investment criteria

The Group is committed to a disciplined investment process where investment is only made in assets that offer attractive returns.
The Group is flexible to respond to an everchanging operating environment. Life of mine plans are continually reviewed to ensure the Group is mining in the most efficient manner to extract maximum returns.

Continued progress towards goal of identifying diamonds within kimberlite

Application to renew Letšeng’s mining lease for a further 10 years to 2034 lodged in March 2018 with progress made under statutory negotiations

Capital invested for tailings storage facility extension at Letšeng

Leadership

NON-EXECUTIVE DIRECTORS

HARRY KENYON-SLANEY

Non-Executive Chairman

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MICHAEL LYNCH-BELL

Senior Independent Director

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MIKE BROWN

Non-Executive Director

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JOHNNY VELLOZA

Non-Executive Director

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Harry Kenyon-Slaney

Non-Executive Chairman

BSc Geology (Southampton University), International Executive Programme (INSEAD France)

Harry Kenyon-Slaney is currently a senior advisor to McKinsey & Co and has over 33 years of experience in the mining industry, principally with Rio Tinto. He is a geologist by training and his experience spans operations, marketing, projects, finance and business development. He has worked in South Africa, Australia and the UK. Harry is also a Partner at Audley Capital Advisors LLP, a member of the boards of directors of Bridon Bekaert Ropes Group and Schenck Process AG and a non-executive director of several private companies. Until 2015, Harry was a member of the Group Executive committee of Rio Tinto where he held the roles of CEO of Energy, and before that CEO of Diamonds and Minerals. Prior to this he variously led Rio Tinto’s global titanium dioxide business, was CEO of Rio Tinto’s listed subsidiary, Energy Resources of Australia Ltd, was GM Operations at Palabora Mining Company in South Africa and held senior marketing roles in copper, uranium and industrial minerals. He began his career as an underground geologist with Anglo American on the gold mines in South Africa.

Appointed

Harry was appointed as Chairman of the Board in June 2017.

Key skills and experience

Commercial and capital markets. Leadership of large and complex global mining and processing businesses. Public company board governance and government stakeholder engagement.

Board committee membership

Chairman of the Nominations Committee and a member of the Remuneration, Audit and HSSE Committees.

 

Michael Lynch-Bell

Non-Executive Director

BA Hons Economics and Accountancy (University of Sheffield); FCA of the ICAEW

Michael spent a 38-year career with Ernst & Young (EY) having led its Global Oil and Gas, UK IPO and Global Oil and Gas and Mining transaction advisory practices. He was a member of the assurance practice from 1974 to 1996 when he transferred to the Transaction Advisory Practice. He was also UK Alumni sponsor and a member of the firm’s EMEIA and Global Advisory Councils. He retired from EY as a partner in 2012 and continued as a consultant to the firm until November 2013. Michael is currently Deputy Chair, Senior Independent non-Executive Director and Nominations Committee Chair at Kaz Minerals Plc; Chair of Seven Energy International, Chair of the Audit Committee at Lenta Limited; and non-Executive Director of Barloworld Limited.

Appointed

Michael joined the Board in December 2015 and was appointed Senior Independent Director in November 2017.

Key skills and experience

Finance and capital markets; Oil and gas; Mining and metals.

Board committee membership

Chairman of the Audit and Remuneration Committees and a member of the Nomination and HSSE Committees.

 

Mike Brown

Non-Executive Director

B.Sc.Eng. Mining PR Eng (ECSA) Engineering (University of Witswatersrand), Strategic Executive Programme (London Business School)

Mike has over 35 years’ experience in the resources industry in operational, senior management, and director roles. He spent six years in Switzerland as the Managing Director Technical at Pala where he oversaw all technical aspects of the investments, including the risks associated with resource performance, project management, ramp up, operations, and the associated working capital and financial controls. Prior to joining Pala, Mike spent 21 years with De Beers in Southern Africa in various roles culminating in the post of Chief Operating Officer where he was accountable for five operating mines, including greenfield and brownfield growth projects. He also managed the restructuring at De Beers Consolidated Mines (DBCM) in 2005/2006 and again in 2009. Mike has overseen growth projects and building of mines in Namibia, South Africa, Sierra Leone, Vietnam and USA.

Appointed

Mike joined the Board in January 2018.

Key skills and experience

Operational, resource performance, project growth and finance

Board committee membership

Chairman of the HSSE Committee, member of the Audit, Remuneration and Nomination Committees

 

Johnny Velloza

Non-Executive Director

Bachelor's Degree in Mining & Mineral Engineering (University of Johannesburg), Bachelor's Degree in Business/Commerce, General (University of South Africa)

Johnny is a Mining Engineer with broad mining experience in both open pit and underground operations across Southern and East Africa, Chile and Australia. Johnny has worked in a number of different commodities including Iron Ore, Copper, Gold and Diamonds. Johnny has held senior operational management roles in large mining companies, including De Beers, AngloGold Ashanti and BHP Billiton. Since starting his career twenty-five years ago Johnny has gained experience in exploration, feasibility studies, opening new mines and running mines. Most recently prior to joining Gem Diamonds, Johnny held a General Manager role in the Pilbara region of Australia with BHP Billiton.

Appointed

Johnny joined Gem Diamonds as Chief Operating Officer in May 2016 and was appointed to the Board as an Executive Director in July 2018. Johnny resigned as Chief Operating Officer in September 2018 and was appointed to the Board as a non-Executive Director on 16 September 2018.

Key skills and experience

Mining industry; Operations; Commercial

Board committee membership

HSSE Committee.

EXECUTIVE DIRECTORS

CLIFFORD ELPHICK

Chief Executive Officer

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MICHAEL MICHAEL

Chief Financial Officer

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Clifford Elphick

Chief Executive Officer

BCom (University of Cape Town); BCompt Hons (University of South Africa)

Clifford joined Anglo American Corporation in 1986 and was seconded to E. Oppenheimer and Son as Harry Oppenheimer’s personal assistant in 1988. In 1990, he was appointed Managing Director of E. Oppenheimer and Son, a position he held until leaving in December 2004. During that time, Clifford was also a Director of Central Holdings, Anglo American and DB Investments. Following the privatisation of De Beers in 2000, Clifford served on the De Beers Executive Committee. Clifford is also the non-Executive Chairman of Zanaga Iron Ore Co. Limited

Appointed

Clifford formed Gem Diamonds in July 2005.

Key skills and experience

Diamond and mining industries; Commercial and capital markets.

Board committee membership

Nominations Committee.

 

Michael Michael

Chief Financial Officer

BCom Hons (Rand Afrikaans University); CA(SA)

Michael Michael has over 20 years’ experience in financial management. He joined RSM Betty & Dickson (Audit Firm) in Johannesburg South Africa in January 1993 and became audit partner at the firm in March 2000. From August 2006 to February 2008 Michael was seconded to Gem Diamonds Limited to assist with the financial aspects of the Main London Listing including the financial reporting, management accounting and tax relating to the Initial Public Offering. In March 2008 Michael joined Gem Diamonds on a full-time basis as the Group Financial Manager. On 2 April 2013 he was promoted to the position of Chief Financial Officer.

Appointed

Michael joined Gem Diamonds in March 2008 and was appointed to the Board in April 2013.

Key skills and experience

Finance and capital markets; Diamond industry.

EXECUTIVE MANAGEMENT

GLENN TURNER

Chief Legal and Commercial Officer
and Company Secretary

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BRANDON DE BRUIN

Chief Business Transformation
Officer

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Glenn Turner

Chief Legal and Commercial Officer and Company Secretary

BA LLB (University of Cape Town); LLM (Cambridge)

Glenn was called to the Johannesburg Bar in 1987 where he spent 14 years practising as an advocate specialising in general commercial and competition law, and took silk in 2002. Glenn was appointed De Beers’ first General Counsel in 2002 and was also a member of the Executive Committee. Glenn was responsible for a number of key initiatives during his tenure, including overseeing De Beers’ re-entry into the USA.

Appointed

Glenn joined Gem Diamonds in May 2006 and served on the Board from April 2008 to November 2017. Glenn was appointed as the Company Secretary in January 2015

Key skills and experience

Diamond industry; Legal.

Board committee membership

HSSE Committee.

 

Brandon de Bruin

Chief Business Transformation Officer

Bachelor of Commerce degree (Economics and Business Economics) and a Bachelor of Laws degree from the University of the Witwatersrand, South Africa; qualified attorney in South Africa and solicitor in England and Wales

Brandon de Bruin joined Gem Diamonds from Clifford Chance LLP, one of the world's leading international law firms. Practicing in New York and London, he specialised in Debt and Equity Capital Markets and Corporate Finance. Brandon gained extensive commercial and legal experience in international corporate and finance transactions working for clients such as Citigroup, UBS, JPMorgan, ABN Amro, Bank of America, Lehman Brothers and Morgan Stanley. He also gained valuable experience in stock exchange listings in London, Luxembourg and New York and also in the UKLA (UK) and SEC (USA) rules and regulations. At Gem Diamonds, Brandon has been closely involved in numerous corporate and financial transactions and in the set-up and management of the Group's Sales, Marketing and Manufacturing division. More recently Brandon has been appointed as the Group's Chief Business Transformation Officer.

Appointed

Brandon joined Gem Diamonds in August 2007

Key skills and experience

Business Transformation; Sales, Marketing and Manufacturing; Legal and Commercial