• GEM DIAMONDS

  • UNITED KINGDOM

  • BELGIUM

  • LESOTHO

  • BOTSWANA

  • SOUTH AFRICA

  • CYPRUS

GEM DIAMONDS

United Kingdom

Belgium

LESOTHO

Botswana

SOUTH AFRICA

CYPRUS

Gem Diamonds at a glance

United Kingdom: Head offices in London. Listed on the LSE (GEMD)

Belgium: Diamond sorting, sales and marketing, analysis and manufacturing in Antwerp

Lesotho: Letšeng Diamonds (Pty) Limited and Letšeng Diamond mine

Botswana: Gem Diamonds Botswana (Pty) Limited and Ghaghoo mine

South Africa: Gem Diamond Technical Services (Pty) Limited in Johannesburg

Cyprus: Gem Diamonds in Cyprus

The Group owns the Letšeng Diamond mine in Lesotho and the Ghaghoo mine in Botswana, with head offices in the United Kingdom and Sales, Marketing and Manufacturing capabilities in Belgium.

Since Gem Diamonds acquired Letšeng in 2006, it has recovered more than 115 greater than 100 carat, rough diamonds. Letšeng is renowned for its large top colour exceptional white diamonds, making it the highest average dollar per carat kimberlite diamond mine in the world.

In addition, Letšeng has produced high quality pink and blue diamonds, with a rare blue diamond achieving a sales price of US$603 047 per carat in 2013 and an exceptional pink diamond achieving US$187 700 per carat in 2016.

Gem Diamonds at a glance

United Kingdom: Head offices in London. Listed on the LSE (GEMD)

Address: 2 Eaton Gate
London SW1W 9BJ
United Kingdom

Tel:  +44 203 043 0280

The Group’s holding company is listed on the London Stock Exchange and has oversight of Governance structures and the Board’s strategic plans.

Gem Diamonds at a glance

Belgium: Diamond sorting, sales and marketing, analysis and manufacturing in Antwerp

Address: Kneller Building
Hoveniersstraat 50-52
2018 Antwerp

Tel:  +32 3 203 4080

Ownership

100% held subsidiaries

Description of operation

Gem Diamonds Marketing Services BVBA – Established October 2010

The Group’s diamonds sorting, sales and marketing operation, Gem Diamond Marketing Services BVBA, has implemented a dynamic and flexible sales strategy for its high value diamonds from the Letšeng mine in Lesotho which focuses on:

  • maximising the revenue achieved on diamond sales;
  • developing the Gem Diamonds brand in the market; and
  • enhancing customer relationships.

Baobab Technologies BVBA – Established April 2012

The Group’s high-tech diamond analysis and manufacturing operation, Baobab Technologies BVBA, is tasked with:

  • understanding the value of exceptional rough diamonds through mapping and analysis; and
  • managing the manufacturing process of selected diamonds for final polished sale.

Gem Diamonds at a glance

Lesotho: Letšeng Diamonds (Pty) Limited and Letšeng Diamond mine

Letšeng Diamonds (Pty) Limited Address:
Letšeng Diamonds House
Corner Kingsway and Old School Road
2Maseru. 0100
Lesotho

Tel:  +266 2222 1800

Letšeng Diamond mine Address:
Letšeng la Terai Mine
Mokhotlong
Lesotho

Tel:  +266 2222 1800

Ownership

70% Gem Diamonds Limited

30% Government of the Kingdom of Lesotho

Acquired

July 2006

Description of operation

The Group’s open pit mining operation in Lesotho focuses on:

  • Mining and processing ore efficiently and safely from its two kimberlite pipes (Main and Satellite pipe)
  • Optimising expansion projects to reduce diamond damage, diamond theft and to improve diamond liberation; and
  • Implementing optimised life of mine (LoM) extensions.

Total resources

5.0 million carats (as at 1 January 2015)

In-situ value

US$10.3 billion (as at 1 January 2015)

View website: https://www.letsengdiamonds.co.ls/

Gem Diamonds at a glance

Botswana: Gem Diamonds Botswana (Pty) Limited and Ghaghoo mine

Gem Diamonds Botswana (Pty) Limited Address:
Unit 4
Plot 20614
Block 3 Industrial
Gaborone
Botswana

P O Box 401304
Gaborone
Botswana
Tel:  +267 318 4288

Ownership

100% Gem Diamonds Limited

Acquired

May 2007

Description of operation

Ghaghoo, the Group’s underground development in Botswana was placed on care and maintenance in February 2017 due to market conditions, with full care and maintenance status achieved in March 2017. A formal sale process is underway to sell the Ghaghoo mine.

Total resources

20.5 million carats (as at 1 January 2014)

In-situ value

US$4.9 billion (as at 1 January 2014)

Gem Diamonds at a glance

South Africa: Gem Diamond Technical Services (Pty) Limited in Johannesburg

Gem Diamond Technical Services (Pty) Limited Address:
Unit 4
Illovo Corner
24 Fricker Rd
Illovo Boulevard
Johannesburg 2196

South Africa

PO Box 55316

Northlands, 2116
South Africa
Tel:  +27 11 560 9600

Ownership

100% owned subsidiary

Description of operation

Established June 2005.

The Group’s technical services company, Gem Diamond Technical Services (Pty) Ltd provides technical services to all companies within the Group.

For more information on our Privacy Policy, please follow this link: Gem Diamond Technical Services (Pty) Limited's Privacy Policy

Gem Diamonds at a glance

Cyprus: Gem Diamonds Innovation Solutions CY Limited

Address: Ifigeneias 17
Strovolos
2007
Leykosia
Kypros
Tel:  +27 11 560 9600

Ownership

Gem Diamonds Investments (100% ownership)

Description of operation

This Cyprus company houses the Group’s innovation and technology research and development projects and related intellectual property rights.

A purpose and vision extending beyond financial measures

  • CARAT
  • CLARITY
  • CUT
  • COLOUR

Purpose

Unearthing unique possibilities

Vision

To support, develop and empower our people so that:
  • a meaningful, sustainable contribution can be made to the countries in which we operate;
  • our employees can benefit in the short and long term; and
  • we can deliver long-term value to our shareholders.

Values

The way we do things

Care – We listen and respond responsibly to the needs of our employees, communities and shareholders. We honour our commitments to all stakeholders, which include the natural environment in which we operate.

Trust – We empower our people and trust them to make decisions that will deliver on our strategy.

Ethical – We have zero tolerance for bribery and corruption and conduct ourselves in a manner consistent with good governance practices. We pride ourselves on being socially and environmentally responsible.

Respect – Everyone matters and is treated equally. We cultivate an open and transparent environment where we value the beliefs, ideas and contributions of our employees, communities and shareholders.

Flexible and open-minded – We encourage and consider ideas from employees while remaining responsive and agile.

Passionate and fun – We enjoy the work that we are fortunate to do and the people we do it with. We seek opportunities to explore and develop while encouraging a work-life balance.

Culture Statement

At Gem we invest in our workforce to create an environment where every person is proud to be part of our family. Mutual respect and care are not only shared throughout the Group but extend to the wider society. Individuals are valued for their differences and are empowered to thrive, grow and contribute to a common goal, holding themselves and each other accountable for delivering on their promises.

A purpose and vision extending beyond financial measures

Purpose

Unearthing unique possibilities

Vision

To support, develop and empower our people so that:

  • a meaningful, sustainable contribution can be made to the countries in which we operate;
  • our employees can benefit in the short and long term; and
  • we can deliver long-term value to our shareholders.

Values

The way we do things

Care – We listen and respond responsibly to the needs of our employees, communities and shareholders. We honour our commitments to all stakeholders, which include the natural environment in which we operate.

Trust – We empower our people and trust them to make decisions that will deliver on our strategy.

Ethical – We have zero tolerance for bribery and corruption and conduct ourselves in a manner consistent with good governance practices. We pride ourselves on being socially and environmentally responsible.

Respect – Everyone matters and is treated equally. We cultivate an open and transparent environment where we value the beliefs, ideas and contributions of our employees, communities and shareholders.

Flexible and open-minded – We encourage and consider ideas from employees while remaining responsive and agile.

Passionate and fun – We enjoy the work that we are fortunate to do and the people we do it with. We seek opportunities to explore and develop while encouraging a work-life balance.

Culture Statement

At Gem we invest in our workforce to create an environment where every person is proud to be part of our family. Mutual respect and care are not only shared throughout the Group but extend to the wider society. Individuals are valued for their differences and are empowered to thrive, grow and contribute to a common goal, holding themselves and each other accountable for delivering on their promises.

Our strategy

How we create value

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.

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.

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

How we create value

Mining

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.

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 and Marketing

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 stakeholders through our business cycle.

01

Extracting
maximum value
from operations

02

Working
responsibly and
maintaining
social licence

03

Preparing for
our future

Extracting maximum value from operations

Optimise operating model

Reduce diamond damage

Practise continuous improvement

2020 delivery

Recovery of 262 diamonds > 20 carats and 16 diamonds > 100 carats

Operating costs per tonne at the Letšeng mine are among the lowest in the world

Business Transformation (BT) target of US$100 million by 2021 on track

Net cash-positive position of US$34.6 million

How we measure this
  • Underlying EBITDA
  • Return on average capital employed
  • Basic earnings per share
  • Cash generated from operating activities
  • Ore tonnes treated
  • Carats recovered
  • > 20 carat diamond recoveries
  • Average US$ per carat achieved

Working responsibly and maintaining social licence

Promoting a culture of zero harm and responsible care

Adopt six UN sustainability goals:

  • No poverty
  • Good health and well-being
  • Clean water and sanitation
  • Decent work and economic growth
  • Reduced inequalities
  • Responsible consumption and production

GIA – Blockchain

2020 delivery

Zero fatalities

Group-wide AIFR of 0.76, the lowest in 10 years

Zero major or significant community or environmental incidents

CSI expenditure of US$0.3 million

US$1.1 million spent implementing the COVID-19 response plan at Letšeng

How we measure this
  • LTIFR
  • AIFR
  • Fatalities
  • No major environmental or community incidents
  • Legal compliance
  • Sustainability
  • Community investment

Preparing for our future

Advancement of innovative technologies focusing on reducing diamond damage

Long term mine planning and optimisation

Assessing external growth opportunities

2020 delivery

The Letšeng mining lease was successfully renewed in 2019 and implemented in 2020

Developed key relationships with stakeholders in order to mitigate the impact of political in-country instability at the operations

The sale of Ghaghoo was significantly delayed during the year due to the impact of COVID-19

New partners were identified to advance the pilot processing plant to detect diamonds within kimberlite and further enhancement and testing will continue in 2021

How we measure this
  • Capital expenditure
  • Waste tonnes mined
  • Mining in accordance with life of mine plan
  • Extending life of mine
  • Mergers and acquisitions

Leadership

Non-Executive Directors

Executive Directors

Executive Management

X

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 38 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 the senior independent director of Petropavlovsk Plc; a member of the advisory board of Schenck Process AG; a non-executive director of Sibanye Stillwater; 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. Hebegan 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 and Sustainability Committees.

X

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 and Senior Independent non-Executive Director at Kaz Minerals Plc; Chair of the Audit Committee at Lenta Limited; Chair of Little Green Pharma 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 Committee

X

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 36 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. Mike is currently a Non-Executive Director of Nevada Copper.

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 Sustainability Committee, Member of the Audit and Nomination Committees.

X

Mazvi Maharasoa

Non-Executive Director

LLM (International and Commercial Law), University of Buckingham

Mazvi Maharasoa has over 21 years’ experience in senior management positions, including leading roles in the mining sector having served as the Resident Director and Chief Executive Officer of Letšeng Diamonds (Pty) Ltd until 2017. Furthermore, Mazvi was also the Founder and President of the Lesotho Chamber of Mines (2016). Prior to her work in the mining industry, Mazvi was involved in the Ministry of Natural Resources and the Central Bank of Lesotho, where she was the senior legal counsel for each of these entities. Mazvi is currently a Non-Executive Director of Stanlib Lesotho (Pty) Ltd and Intellectual Disabilities and Autism Lesotho and has also established an advisory firm that specializes in corporate governance practice and advice.

Appointed

Mazvi joined the Board in July 2019.

Key skills and experience

Mining and resources industry, public company board governance.

Board Committee Membership

Member of the Sustainability Committee

X

Rosalind Kainyah

Non-Executive Director

BA (Hons) (University of Ghana), LLB (Hons) (University of London), LLM (University College, University of London), Member of the Bar of England & Wales (Gray’s Inn), MCIArb

Ms Kainyah is the founder and Managing Director of Kina Advisory Limited, a trusted advisor to Boards and Senior Executives of global companies on Sustainability and responsible business investment and partnerships in emerging markets. She trained as a lawyer and is a member of the Bar of England and Wales and of the Chartered Institute of Arbitrators. Rosalind has almost 30 years of combined international, senior management, executive and board level experience. She has worked with companies and organisations including Linklaters, Anglo American Corporation of South Africa, De Beers, Tullow Oil plc, the United Nations Environment Programme and ERM, and on projects across Africa, in the UK, Europe, North & South America, Asia, and the South Pacific. As a result, she has a wide network and is respected across a range of stakeholders from governments and corporates through civil society organisations and media for her professional expertise and as a woman of integrity and credibility.

Appointed

Rosalind joined the Board in May 2021

Key skills and experience

Sustainability, Environmental, Diamond and mining industries, Legal and Finance

Board Committee Membership

Member of the Remuneration, Audit and Sustainability Committees

X

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.

X

Michael Michael

Chief Financial Officer

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

Michael Michael has over 21 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.

X

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.

X

Brandon de Bruin

Chief Operating Officer

BCom (Economics and Business Economics) and LLB - University of the Witwatersrand; Attorney (SA) and Solicitor (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 and Bank of America. He also gained valuable experience in stock exchange listings in London, Luxembourg and New York. At Gem Diamonds, Brandon has led numerous corporate and financial transactions and managed the Group's Sales, Marketing and Manufacturing division. In 2017, Brandon headed up the Group’s Business Transformation program as the Chief Business Transformation Officer and recently, following his appointment in 2019 as the Group Operations and Business Transformation Executive, he has been appointed as the Group’s Chief Operating Officer.

Appointed

Brandon joined Gem Diamonds in August 2007

Key skills and experience

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

X

Jaco Houman

Senior Manager - Technical and Projects

B.Eng(Met) (University of Pretoria); MBA (University of Witwatersrand Business School)

Jaco’s technical and managerial career spans more than 23 years. He has a diverse background in areas of operational excellence, design, production, technical support, SHEQ and consulting. Key activities that he has been involved in includes development and implementation of a turnaround plan, performance improvement initiatives, cost reduction measures, volume expansion at an operation, project, and group level. He has led and assisted in the development of technical strategies, pre-feasibility and feasibility studies, design, commissioning and technical evaluation reviews. He led the safety, occupational hygiene and environmental departments at a large corporate for more than 2 years. He has spent some time in business improvement and applied financial modelling skills to enhance operational delivery through the optimisation of the value chain to maximise value for the business.

Appointed

Jaco joined Gem Diamonds in June 2016

Key skills and experience

Projects Management (Studies, Design, Construction and Commissioning), Operational Excellence, Production Management, Technical and Business Consulting, Safety and Environmental Management.

Business Transformation

By turning the spotlight on enhancing the efficiency of our operations, we are shaping our business for a profitable and sustainable future for the benefit of all our stakeholders – targeting US$100 million cumulative revenue, cost savings and productivity improvements over a four year period to 2021.

Time for change

The Group has, in recent years, faced short and medium-term price pressures, challenging operational conditions and increasing costs related primarily to deeper mining, increased waste mining and longer haul distances. These factors have placed increasing pressure on margins and cash flow.

In February 2017, the Group identified the need for a formal business review process. A dedicated Business Transformation team headed by the Chief Business Transformation Officer, and fully supported by the Chairman and Board of Directors, was tasked to ensure the successful implementation and ongoing sustainability of all revenue, cost reduction and productivity improvement initiatives. These initiatives were primarily generated by the entire workforce through focussed idea generation sessions to drive bottom-up innovation and ownership.

Organisational Health

The organisational health of the Group underpins the success and sustainability of the Business Transformation and through an organisational health index (OHI) survey, areas requiring improvement were identified and addressed. An annual employee culture survey is conducted to keep in touch with the impact of implemented actions and identify other areas of improvement. The self-funded Business Transformation Employee Recognition and Reward Scheme, rewarded all employees who took ownership of and implemented initiatives that contributed to the success of the Business Transformation programme.

Delivering Value

Through a vigorous planning phase, more than 300 initiatives were identified, targeting cumulative cash cost savings and productivity improvements of approximately US$100 million over a four-year period to end 2021 (net of implementation costs and fees).

The implementation phase of the Business Transformation commenced in the fourth quarter of 2017.

For more information on the Business Transformation tracking, please refer to the Annual Reports and Accounts, Half-year Reports, relevant trading updates and press releases.

AT INCEPTION - DELIVERING US$100 million
(up to 2021)

CURRENT STATUS - AS AT 31 DECEMBER 2020

BT programme annual cash saving (US$ million)

Find out more

Shareholder information

Regular engagements with shareholders and other stakeholders provide relevant input for decision-making, promote the long-term sustainability of the Group and enable our contribution to wider society.

Shareholder information

Regulatory news

Our archive holds all relevant news and RNS releases as part of our listing requirements for the LSE.

Regulatory news

Corporate governance

Good governance is not dependent on laws but on the principles and qualities of those who govern them.

Corporate governance