Business
Ellendale Mine Update
Ellendale Mine Update.
About this update from Gem Diamonds Limited
[{"type":"text","content":"\n RNS Number : 2391Z Gem Diamonds Limited 17 July 2008 \n\nFINAL\n \n17 July, 2008\n \nGEM DIAMONDS LIMITED\n(“Gem Diamonds” or the “Company”)\nELLENDALE MINE TURNAROUND ON TRACK\n \nGem Diamonds (LSE: GEMD), the FTSE 250 diamond company, which acquired Australia’s Kimberley Diamond Company in 2007, is pleased to announce that its turnaround strategy for the Ellendale mine in Western Australia is on track, with a number of production records having been broken in the last month.\n \nIn June 2008, the mine’s monthly production record was broken. Plants at Ellendale 9 and Ellendale 4 processed a record 697 000 tonnes of ore for the month to produce a record 57 814 carats. By comparison, when Gem Diamonds announced its bid for Kimberley Diamond Company a year ago, the mine had just processed 557 091 tonnes of ore and recovered 36 565 carats in June 2007.\n \nIn July 2008, Ellendale broke two daily production records successively. On 7 July plants at Ellendale 9 and Ellendale 4 processed 29 237 tonnes and recovered 2 566 carats. This record was subsequently broken the following day with 31 575 tonnes processed and 3 130 carats recovered. \n \nThe increased level of productivity is predominantly achievable as a result of improvements in plant processing capacity achieved with the recapitalisation program and enhances management’s confidence in reaching Ellendale’s 2008 target of 8.5 million tonnes of ore processed with 600 000 carats recovered. Ongoing capacity adjustments are underway and ramp ups continue with Ellendale expected to process 10.5 million tonnes and recover circa 730 000 carats in 2009.\n \nAfter completing the acquisition of Kimberley Diamond Company, Gem Diamonds appointed a new Managing Director, Alistair Croll to oversee the operations.\n \nMarketing and sales techniques were also improved resulting in a 39% increase per carat of rough diamonds from US$152 per carat to US$216 per carat in Q108. Ellendale is renowned for its production of fancy and vivid yellow diamonds, the value of which is thought to have increased 500% over the last 12 years.\n \n \nGem Diamonds CEO Clifford Elphick commented:\n \n“Recent record breaking production levels at Ellendale confirm the success of the turnaround strategy being impleme...