Business
Half Year Results
Half Year Results.
About this update from Gem Diamonds Limited
[{"type":"text","content":"\n RNS Number : 5105R Gem Diamonds Limited 24 August 2010 \n \n\n \n \n24 August 2010\nGem Diamonds Limited\n(\"Gem Diamonds\" or the \"Company\")\n \nHalf Year Results for the half year ended 30 June 2010\n \n \nGem Diamonds (LSE: GEMD) a leading diamond mining company reports its half year results for the half year ended 30 June 2010:\n \nOperational highlights:\n \n§ Letšeng continues to produce large high quality diamonds: \n- A total of 245 rough diamonds over 10.8 carats in size were sold \n- 35 diamonds reached prices in excess of US$20 000 per carat\n- A 27.91 carat diamond sold for US$58 724 per carat, the highest price for a Letšeng rough white diamond sold on tender since July 2008\n§ At Ellendale strong prices achieved for fancy yellow diamonds; and other production back at pre-crash price \n levels. \n§ Investigating growth strategy through targeted acquisitions and the development of existing assets. \n§ HSSE - Company record of 2.8 million man hours worked without an LTI over the past eight months\n \nFinancial Highlights: \n \n§ Revenue of US$103.9 million \n§ EBITDA of US$18.5 million\n§ Gross cash generated from operating activities of US$27.9 million \n§ Profit before tax from continuing operations of US$7.8 million \n§ Attributable earnings of US$3.0 million (1.72 US cents per share)\n§ US$108.3 million gross cash with no debt provides the Company with a platform for growth.\n \nMarket Outlook:\n \n§ Sustained recovery in prices for rough and polished diamonds \n§ Medium and long-term supply/demand imbalance remains\n \nClifford Elphick, CEO, commented:\n \n\"Letšeng continues to recover large diamonds of the highest quality and colour. The recovery in rough and polished diamond prices has been broadly based and at the top end this was well illustrated in June when Letšeng sold a 27.91 carat white diamond for US$58 724 per carat, achieving the highest US$ per carat for a Letšeng white diamond sold on rough tender since July 2008. At Ellendale the long term agreement with Tiffany for the purchase of its rare fancy yellow diamonds has continued to show the benefits of working with this partner. \n \nThe management of Gem...