Gem Diamonds Limited (LSE: GEMD) (“Gem Diamonds”, the “Company” or the “Group”) today announces its half year results for the six months ending 30 June 2015 (“H1 2015” or “the Period”). To view the announcement in full, please click on the following link.

HIGHLIGHTS FROM THE OPERATIONAL RESULTS:
Letšeng: Strong operational performance with projects delivered on time and budget; robust prices achieved in a difficult market

• Carats recovered of 50 019 (54 678 in H1 2014)
• Average value of US$ 2 264* per carat achieved (US$2 747* in H1 2014) – *includes carats extracted for polishing at rough valuation.
• Ore treated of 3.1 million tonnes (3.2 million in H1 2014)
• Waste tonnes mined of 11.4 million tonnes (10.0 million tonnes in H1 2014)
• Zero lost time injuries

Ghaghoo: Recovered grade trending upward; recovery of some larger diamonds

• Carats recovered of 35 283
• Ore treated of 132 125 tonnes
• Average grade achieved between 28 and 30 cpht for May and June
• Sale of 10 096 carats in January 2015, achieved US$210 per carat
• Zero lost time injuries

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

“Letšeng continues to consistently produce the large, exceptional quality diamonds. Prices for these goods have remained firm, despite the current challenging conditions in the diamond market.

The Company continues to demonstrate capital discipline and, at Letšeng, we have successfully completed the low capex incremental growth projects on time and on budget. The previously announced optimised Life of Mine plan for Letšeng has significantly increased the NPV of the mine by allowing optimal access to the high value Satellite pipe material and smoothing out the waste mining profile. Letšeng remains on track to meet its targets for the year.

At Ghaghoo, the mine development and ramp up to full planned production rates continues to progress, despite challenges in localised ground conditions. The first parcel of Ghaghoo commissioning diamonds was sold in February 2015 for US$ 2.1 million, achieving US$ 210 per carat. In July, a second parcel was sold for US$ 4.9 million (US$ 165 per carat), a lower price given the current market conditions. Encouragingly, as production begins to ramp up, a number of larger white diamonds and small coloured diamonds were recovered during the Period.

In June, the Company paid its maiden dividend of 5 US cents per share (US$ 6.9 million)”.