LSE-listed Gem Diamonds continues with the successful implementation of its business transformation programme, which is aimed at achieving $100-million in incremental revenue, productivity improvements and cost savings to the end of 2021.

Reporting on the diamond miner’s results for the six months ended June 30, CE Clifford Elphick on Thursday said the company had already achieved $42-million in cost savings, net of implementation costs and fees, over the first 18 months of the programme.

Meanwhile, Gem recorded revenue of $91.3-million for the interim period to June 30, compared with the $167.7-million earned in the six months to June 30, 2018.

Underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) were $25.3-million, down from $70.7-million in the prior comparable period.  

Attributable profit from continuing operations decreased to $6.6-million, from $26.8-million in the prior period.

Basic earnings a share also decreased to $0.05, compared with the $0.19 reported for the prior comparable period.

Gem, which owns 70% of the Letšeng mine, in Lesotho, is selling its 100% interest in the Ghaghoo mine, in Botswana. Care and maintenance costs of $2.4-million were incurred at Ghaghoo during the interim period.

Gem sold one 13.32 ct pink diamond recovered at Letšeng for $8.8-million – a record price of $656 934/ct.  

Elphick noted that this reaffirmed the unique quality of Letšeng’s diamond production.

“The prices achieved for the period are 10% up from the prices achieved in the preceding six-month period, notwithstanding the planned limited contribution from the satellite pipe ore and current diamond market conditions.”

The company recovered three diamonds greater than 100 ct.

In terms of technology and innovation, construction of the pilot plant for detecting diamonds within kimberlite at Letšeng was completed with commissioning and ramp-up planned for the third quarter of this year.