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Gem Diamonds Slides to 1H Loss
Aug 17, 2016 3:54 AM
By Rapaport News
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RAPAPORT... Gem Diamonds swung to a loss in the first half due to an impairment charge related to downsizing operations at the Ghaghoo mine in Botswana.
The miner reported a loss of $15.9 million in the six months
that ended June 30 versus a profit of $25.6 million a year ago. The $40 million
charge represents the estimated impact of a decision to cut the Ghaghoo mine’s
output to 300,000 tonnes per year, from an earlier plan of reducing it to 720,000
tonnes amid challenging market conditions.
Revenue dropped 7.5 percent to 109.1 million, with rough
sales from the high-value Letšeng mine in Lesotho virtually flat at $106.2
million. Lower prices outweighed the positive effect of higher sales volume,
the company reported
last month.
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Tags:
Gem Diamonds, Lesotho, Letśeng, mining, Rapaport News
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