GEM Diamonds Not Pursuing Petra's Assets

Rough Market
04/09/2020 08:04

In a Q&A following the announcement of interim results, GEM Diamonds CEO Clifford Elphick said the company is not pursuing any of Petra's assets. "They are lovely assets but there is a massive debt pile and everyone looks at this in the same way … We’re near the end of all this.”, Elphick said. In the first half of 2020, GEM Diamonds reported a US$1.7 million loss, compared to a US$ 4.2 million profit in the same period last year, and the Letseng mine production forecast was adjusted to 96,000ct down from 100,000ct. Elphick is, however, cautiously optimistic as he feels sentiment in the market has improved somewhat in the past ten days.

At the end of July, Botswana Diamonds PLC announced it acquired 100% of Petra's wholly owned operating subsidiary in Botswana Sekaka shares of the KX36 diamond discovery in Botswana, alongside two prospecting licenses and a diamond processing plant.