Gem Diamonds Limited reported a strong performance for FY 2014 (period ending December 31) in the results the Company announced yesterday.

Revenue for the company touched US$ 271 million (+27%), underlying EBITDA stood at US$ 104 million (+ 35%) attributable net profit was US$ 33 million (+57%). The Company also reported that cash on hand stood at US$ 111 million as at 31 December 2014 (net after debt) of which US$99.4 million is attributable to Gem Diamonds.

“During 2014, Gem Diamonds demonstrated a strong operational performance, delivering on a number of strategic objectives, resulting in a robust financial position and maiden dividend,” the Company said in a press note.

This performance was based on 108,569 carats recovered with an average of US$ 2,540 per carat realised.

The Company announced a dividend of 5 US cents per share, and a total dividend of US$6.9 million.

The Phase 1 capital project at Ghaghoo, the Company’s second mine, “has been completed on time and on budget”, the Company said, adding, that final commissioning and optimisation of the plant is in progress. “A total of 10 167 carats recovered during commissioning, (including a 20 carat white diamond, a 17 carat white diamond and a three carat orange diamond),” the Company said in its note.

“2014 was a solid year both financially and operationally for Gem Diamonds,” commented Clifford Elphick, Chief Executive Officer of Gem Diamonds. “We successfully delivered on a number of key growth objectives including bringing Ghaghoo into production, significantly enhancing operational efficiencies at Letšeng and delivering a maiden dividend.” 

He added: “As we expand from a single producing mine to two producing mines, with the ramp up of production at Ghaghoo, we will start to see a significant shift in production figures.”

The Company also said that it continued “to focus on enhancing operational efficiencies and investing in innovative technologies at both Letšeng and Ghaghoo, delivering improved earnings and positioning Gem Diamonds for long term sustainable growth”.