Business
Half Year 2023 Results
Half Year 2023 Results.
About this update from Gem Diamonds Limited
[{"type":"text","content":"\n\n\nThursday, 31 August 2023\n \nGem Diamonds Limited\nHalf Year 2023 Results\n \nGem Diamonds Limited (LSE: GEMD) (\"Gem Diamonds\", the \"Company\" or the \"Group\") announces its Half Year Results for the six months ended 30 June 2023 (the \"Period\").\n \nFINANCIAL RESULTS:\n· Revenue of US$71.8 million (H1 2022: US$100.0 million)\n· Underlying EBITDA of US$8.4 million (H1 2022: US$20.9 million)\n· Cash on hand of US$7.3 million as at 30 June 2023 (US$6.2 million attributable to Gem Diamonds)\n· The Group has unutilised facilities of US$72.9 million\n· Loss per share of 0.7 US cents (H1 2022: earnings per share of 2.7 US cents)\n \nOPERATIONAL RESULTS:\nLetšeng\n· Zero fatalities and one lost time injury\n· Recovered 50 601 carats (H1 2022: 55 157 carats)\n· Waste tonnes mined of 4.8 million tonnes (H1 2022: 6.3 million tonnes)\n· Ore treated of 2.5 million tonnes (H1 2022: 3.0 million tonnes)\n· Average value of US$1 373 per carat achieved (H1 2022: US$1 745 per carat)\n \nSafety performance\nThe organisational safety culture maturity strategy, that commenced in 2021 to improve safety performance at Letšeng, has been fully executed and led to an improved safety performance during the Period. Letšeng recorded zero fatalities and one LTI during the Period (2022: three), resulting in an improved LTIFR and AIFR of 0.09 (2022: 0.13) and 0.57 (2022: 0.7), respectively.\n \nDiamond market\nThe global rough diamond market has experienced a downturn in 2023. A decrease in the number of large, high-value diamonds recovered, combined with market pressure has negatively impacted the average dollar per carat and revenue achieved during the Period.\n \nOperational performance\nIncreasing grid electricity interruptions caused a reduction in volumes of ore processed. In addition, higher than expected internal basalt dilution in certain domains of ore that was treated impacted throughput. To mitigate the impact of internal basalt dilution, improve plant stability and large diamond recoveries, in the latter part of Q2 2023, an operational decision to open crusher gaps and to slow throughput in the processing plant was implemented.\n \nTCFD and Climate\nFollowing the adoption of the TCFD recommendations, the Group com...