News

Advanced Search

Severe Snow Disrupts Letšeng Mine Operations

Aug 10, 2016 8:40 AM   By Rapaport News
Email Email Print Print Facebook Facebook Twitter Twitter Share Share


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.
Tags: Gem Diamonds, Lesotho, Letšeng, Letšeng mine, Panmure Gordon, Production, Rapaport News
Similar Articles
DiamcorDiamcor Sales Stall Amid Shift to Cheaper Rough
Jan 27, 2020
Diamcor Mining’s rough-diamond sales were flat year on year in the third fiscal quarter, as a shift to lower-quality
AlrosaWeak Market Dents Alrosa Sales
Jan 26, 2020
Rough-diamond sales at Alrosa fell 26% in 2019 as an oversupply in the midstream led to weaker demand.Revenue for the
© Copyright 1978-2020 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.