Gem Diamonds Limited Half Year 2020 Results


Gem Diamonds Limited (LSE: GEMD) (“Gem Diamonds”, the “Company” or the “Group”) announces its Half Year Results for the six months ending 30 June 2020 (the “Period”).


  • Positive cash generation reduced the Group’s net debt position by US$4.7 million during the Period to US$5.5 million
  • Cash on hand of US$17.5 million at 30 June 2020 (US$13.8 million attributable to Gem Diamonds)
  • The Group has unutilised facilities of US$51.6 million
  • Revenue of US$69.5 million (H1 2019: US$91.3 million)
  • Underlying EBITDA of US$11.3 million (H1 2019: US$25.3 million)
  • Loss from discontinued operations US$1.9 million relating to Ghaghoo (H1 2019: US$2.4 million)
  • The Business Transformation programme has delivered US$65.0 million, net of fees and costs, to the Group’s results to date.


  • No lost time injuries during the Period
  • Temporarily suspended operations for 30 days during the Period in line with government’s lockdown orders
  • Average value of US$1 707 per carat (H1 2019: US$1 697 per carat)
  • Seven diamonds larger than 100 carats recovered (H1 2019: Three)
  • Recovered 43 275 carats (H1 2019: 56 668 carats)
  • Waste tonnes mined of 5.2 million tonnes (H1 2019: 13.2 million tonnes)
  • Ore treated of 2.4 million tonnes (H1 2019: 3.3 million tonnes)

COVID-19 Response

In response to the global pandemic, the Group has implemented a COVID-19 Detection and Management Protocol which includes policies and procedures, guided by medical experts, various host country regulations and World Health Organization recommendations.

The Group has implemented a wide range of precautions to protect its workforce and prevent the spread of COVID-19. These measures include thermal screening, X-ray screening, polymerase chain reaction (PCR) screening, COVID-19 serology tests (rapid tests), promotion of sanitation measures, appropriate social distancing, compulsory wearing of face masks, training and counselling and the provision of personal protective equipment (PPE).

Commenting on the results today, Clifford Elphick, Chief Executive Officer of Gem Diamonds, said:

“One of the Group’s foremost priorities is the welfare of its employees, contractors and the communities in which it operates. The Group is taking all necessary precautions to protect its people as part of its COVID-19 response.

Letšeng delivered satisfactory operational results notwithstanding the imposed shutdown of 30 days during the Period to curb the spread of COVID-19. The frequency of large diamonds recovered improved in all size categories greater than 10.8 carats when compared to the previous period.

Despite the challenging global conditions, the sales results during the Period demonstrated the continued demand for Letšeng’s high quality diamonds, achieving an average price of US$1 707 per carat. It is also pleasing to note the reopening of key sectors within the diamond industry, in particular the manufacturing sector, which should support positive demand in the short to medium term.” The Company will host a live audio webcast presentation of the full year results today, 3 September 2020, at 9:30 BST. This can be viewed on the Company’s website:

The page references in this announcement refer to the Half Year Report, which can be found on the Company’s website:

The Gem Diamonds Limited LEI number is 213800RC2PGGMZQG8L67