Sale of the 198 carat Letseng diamond

RNS Number : 0194T

Gem Diamonds Limited

01 October 2014

 

01 October 2014

GEM DIAMONDS LIMITED

("Gem Diamonds" or "the Company")

Sale of the 198 carat Letšeng diamond

Gem Diamonds Limited (LSE: GEMD) is pleased to announce the sale of the 198 carat white diamond (which recovery was announced on 5 August 2014) for US$ 10.6 million (US$ 53 746 per carat) in accordance with its colour, clarity and expected polished yield at Letšeng's September tender.

Gem Diamonds CEO, Clifford Elphick stated:

"The sale of this large, high quality white diamond demonstrates the continued robust demand for large high quality diamonds."

For further information:

Gem Diamonds Limited

Sherryn Tedder, Investor Relations

Tel: [phone]

Mob: [phone]

Bell Pottinger

Charles Vivian / James MacFarlane

Tel: [phone]

About Gem Diamonds:

Gem Diamonds is a leading producer of high value diamonds. The Company owns 70% of the Letšeng mine in Lesotho (30% held by the Government of Lesotho); as well as the Ghaghoo mine in Botswana. The Letšeng mine is famous for the production of large, top colour, exceptional white diamonds, making it the highest dollar per carat kimberlite diamond mine in the world. Since Gem Diamonds' acquisition of Letšeng in 2006, the mine has produced four of the top twenty largest white gem quality diamonds recorded.

Gem Diamonds has a growth strategy based on the expansion of the Letšeng mine and the development of the Ghaghoo mine, while maintaining its strong balance sheet. The Company seeks to maximise revenue and margin from its rough diamond production by pursuing cutting, polishing and sales and marketing initiatives further along the diamond value chain. With favourable supply/demand dynamics expected to benefit the diamond industry over the medium to long term, particularly at the high end of the market, this strategy positions the Company well to generate attractive returns for shareholders in the coming years.

www.gemdiamonds.com

 

END

 

 

MSCMMGFLMGDGDZM