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Severe Snow Disrupts Letšeng Mine Operations
Aug 10, 2016 8:40 AM
By Rapaport News
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RAPAPORT... Gem
Diamonds said operating costs may rise as severe snowfall and winds have restricted
access to its Letšeng mine in Lesotho. The company maintained its production
guidance for the year but cautioned it may need to re-assess its guidance for
ore tonnes treated and costs.
The mine’s
processing plants are operating at reduced rates with the help of standby
generators as the extreme weather damaged overhead power lines. The Lesotho
Electricity Company is on site carrying out repairs and an external power
supply is expected to be fully restored soon, Gem Diamonds said.
Production
this year is likely to remain within original guidance of 107,000 to 109,000
carats after a strong performance in the first half, the miner stressed.
Analysts
at Panmure Gordon reiterated their “buy” rating for Gem Diamonds given that “full-year
production guidance can still be achieved, albeit at a higher cost.” The share
was down less than half a percent in afternoon trading on the London Stock
Exchange.
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Tags:
Gem Diamonds, Lesotho, Letšeng, Letšeng mine, Panmure Gordon, Production, Rapaport News
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