16th Feb 2017 08:23
LONDON (Alliance News) - Gem Diamonds Ltd on Thursday said it has put its Ghaghoo mine in Botswana on care and maintenance with immediate effect, awaiting an upturn in conditions in the diamond market before it will put the mine into full commercial production.
Gem said it has now reached the point in Ghaghoo's development where it will shortly be in a position to start full commercial production.
However, the material decline in diamond prices, to around USD142.00 per carat in the firm's most recent sale in December from USD210.00 per carat in early 2015, demonstrates the weak conditions in the diamond market presently.
As such, Gem said it will put Ghaghoo on care and maintenance and will continue to monitor market conditions in order to start commercial production when this makes the most economic sense.
It expects putting Ghaghoo on care and maintenance will cost around USD3.00 million a year.
Shares in Gem Diamonds were down 2.9% to 111.70 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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