Group revenue was mainly due to its two activities: the sales of raw material from the mine Letseng (Letšeng) in Lesotho and more profits from diamond manufacturing operations in Belgium.
The company managed to achieve in the Letseng average price per carat of $ 1695 after the sale of 108,945 carats, which is 26% less than in 2015, when the average price of diamonds amounted to $ 2,299 per carat.
Lower price per carat was mainly due to the fact that Letseng during the year were produced less quality diamonds weighing over 100 carats, the company said.
The sale of the project Ghaghu (Ghaghoo) did not affect the performance of group revenues for the current and previous years, but for the mine were taken into account operating costs and development costs and the carrying amount of an asset, because mine did not reach full commercial production before the end of the year.
With Ghaghu company sold 47,266 carats for the year of $ 7.2 million, reaching the price of an average of $ 152 per carat, compared with $ 162 per carat in 2015.
"This drop in prices underscored the weak state of the diamond market for this product category", - the report says Gem Diamonds.
Underlying EBITDA group fell to $ 62.8 million during the period compared to $ 103.5 million in 2015, while the profit for the year also decreased to $ 32.3 million compared with $ 67.4 million a year earlier.
Meanwhile, Letšeng in 2016, the company produced 108,206 carats compared to 108,579 carats in 2015.
"Mine Letseng has proved itself in practice and has reached all the performance indicators in the framework of targets and forecasts", - said stated CEO Klifford Elfik (Clifford Elphick).
"Demand and prices achieved for large, high quality diamonds produced at Letšeng, remained at the same level, but lower production of diamonds weighing over 100 carats in 2016 had a negative impact on earnings and cash flow," - he continues.
Earlier, Gem Diamonds reported that production at Ghaghu was dropped after the decision to reduce output due to weak market conditions, which occurred in 2015.
In total the company had processed 217,372 tonnes of ore and recovered 40,976 carats of diamonds, which yielded 18.9 carats of diamonds at an average content per cubic foot, the company said.
Ghaghu was placed on care and maintenance in February as a result of lower prices for diamonds.
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Indian jewelry retailer Kalyan Jewellers plans to increase its turnover to about $ 1.95 billion in the 2017 fiscal year due to the expansion of its operations to 20 stores in India and the United Arab Emirates worth $ 135 million, according to the portal hindubusinessline.com
Kalyan Jewellers, a minority shareholder is Warburg Pincus, finance expansion of operations own resources. The company owns a network of 76 retail stores in India and 21 stores in Kuwait, Qatar and the UAE.
General Director Kalyan Jewellers Kalyanaraman Ramesh (Ramesh Kalyanaraman) said: "We plan to increase our turnover to $ 1.95 billion in the current fiscal year due to the planned expansion of opening its own stores Company We mainly focus on opening stores in cities of the first category outside the South.. India. in the past fiscal year, revenue was $ 1.5 billion, with $ 225 million managed to get in retail stores abroad. Five new stores will be opened in the UAE, and in addition, we are exploring expansion opportunities in Singapore
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