LONDON (ShareCast) - (Sharecast News) - Gem Diamonds shares were in the red on Wednesday afternoon, after the company reported an increase in revenue to $267.3m from $214.3m in its full-year results.
The London-listed firm said its underlying EBITDA for the year ended 31 December was $82.3m, surging from a figure of $48.6m before exceptional items in 2017.

Profit for the year more than doubled to $46.6m from $20.8m before exceptional items, while attributable profit totalled $26m, compared to $9.1m 12 months earlier.

Earnings per share rose to 18.80 US cents from 6.56 US cents before exceptional items in 2017.

Gem Diamonds had cash on hand of $50.8m at year-end, with $43.3m attributable to the company.

On the operational front, at Letšeng, Gem Diamonds reported 126,875 carats recovered during the year, rising from 111,811 in 2017.

A total of of 25.8 million waste tonnes were mined, down from 29.7 million, while 6.5 million tonnes of ore was treated, up marginally from 6.4 million in the prior year.

An average value of $2,131 per carat was achieved, compared to $1,930, with the company recovering a record of 15 diamonds larger than 100 carats each, rising from seven year-on-year.

A 138.28 carat white diamond achieved a price of $60,428 per carat, which was the highest dollar per carat achieved for a white rough diamond during the year.

The board noted the installation of non-mechanical diamond liberations at Letšeng during the year, and said a $3m pilot plant to detect diamonds within kimberlite was on track to be commissioned during the second quarter of 2019.

It said it had resolved not to propose the payment of a dividend in respect of the 2018 financial year and its ongoing focus on the transformation of the business, in order to strengthen the balance sheet.

\"Gem Diamonds achieved a good set of results, characterised by the recovery of 15 diamonds greater than 100 carats, a record for a single calendar year,\" said Gem Diamonds chief executive Clifford Elphick.

\"Production in 2018 also included the highest recovery of diamonds greater than 20 carats, with 80% of revenue primarily generated by diamonds greater than 10 carats.

\"The mine plan for Letšeng was revised during 2018, with the aim of further reducing the waste stripping through the steepening of inter-ramp slope angles.\"

Mining in accordance with that plan had begun, Elphick said, adding it was expected to \"significantly increase\" the net present value of the mine.

\"The business transformation process has progressed well and remains on-track to achieve the target of $100m in cost savings and efficiencies by 2021.

\"By December 2019, the initiatives already implemented are expected to deliver $64m to the end of 2021.\"

At at 1340 GMT, shares in Gem Diamonds were down 6.25% at 90p.

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