Business
Update on the future of the Ghaghoo mine
Update on the future of the Ghaghoo mine.
About this update from Gem Diamonds Limited
[{"type":"text","content":"\n \nRNS Number : 0565X Gem Diamonds Limited 16 February 2017 \n\n \n16 February 2017\n \n \nGEM DIAMONDS LIMITED\n(\"Gem Diamonds\" or \"the Company\")\n \nUPDATE ON THE FUTURE OF THE GHAGHOO MINE\nThe Company's Board has decided that the Ghaghoo mine in Botswana will be placed on care and maintenance with immediate effect.\nAs previously announced, the development of the mine at Ghaghoo has progressed well and has now reached the point where it will shortly be in a position to commence full commercial production. However, the material fall in the prices of its diamonds from US$ 210 per carat in early 2015 to US$ 142 per carat at its most recent sale in December 2016, emphasises the weak state of the diamond market for this category of diamonds. With the Company's focus on profitable production, the decision has been made to place the asset on care and maintenance, and to continue to monitor market conditions for a time when commencing full production would make economic sense.\nIt is anticipated that, post once off settlement costs, this will result in an annualised care and maintenance cost of US$ 3 million.\n \nThis announcement contains inside information for the purpose of Article 7 of Regulation (EU) No596/2014\n \nFor further information:\nGem Diamonds Limited Celicourt Communications\nJuliet Cox, Investor Relations Joanna Boon / Mark Antelme\nTel: +44 (0) 203 043 0280 Tel: + 44 (0) 207 520 9265\n \n \nAbout Gem Diamonds: Gem Diamonds is a leading global diamond producer of high value diamonds. The company owns 70% of the Letšeng mine in Lesotho and 100...