GEM reports 81% increase in Letseng sales

GEM DIAMONDS REPORTS 81% INCREASE IN LETSENG SALES
Tacy - Ramat Gan,Israel
Gem Diamonds, which owns 70 percent of Lesotho’s Letseng mine, has reported an increase of 81 percent in totals sales from the mine to US$152 million for the year ending December 31, 2007. The diamond mining company says that 76,873 carats were sold from Letseng during the year, a 45 percent increase from the 52,998 carats that were sold during 2006. The Lesotho government owns the remaining 30 percent of the mine. The company also experienced a 30 percent increase in tonnes of ore mined and processed compared to last year as a result of the doubling of contractor processing capacity and improved hard rock processing ability in No. 1 Plant. A second plant at Letseng, whose production began in February 2007, is scheduled to start commissioning in the first quarter of 2008 ... Gem Diamonds also has three projects in the Democratic Republic of Congo: the Mbelenge mine, the Lubembe project, and the Longatshimo project. Moreover, the company has exploration projects underway in Angola, Botswana and the Central African Republic. During 2007, the company spent US$404 million on acquisitions in Australia, Botswana, DRC and Indonesia, which are all now under Gem Diamonds’ control.Chief Executive Officer Clifford Elphick says that heading into 2008, the LSE-listed company is profitable and has a positive cash flow. He also says that “operations have generally performed ahead of expectations ...