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15 Dec 2008 07:00
15th December, 2008 RNS RELEASE
GEM DIAMONDS
"Gem Diamonds" or "the Company"
Gem Diamonds to place the Cempaka Mine on Care & Maintenance
Gem Diamonds Ltd (LSE:GEMD) released its Operational Update and Trading Statement on 17th November in which the company indicated that it was reviewing the situation at the Cempaka mine in Indonesia which could lead to the low margin operation being placed on care and maintenance.
The review has now been completed. Gem Diamonds has decided that due to the impact of the declining price of Cempaka's rough diamonds since the onset of the global economic recession and in line with the company's strategy to focus on cash flow generation, the Cempaka mine will be placed on care and maintenance from 1st January 2009.
Gem Diamonds has informed the relevant Indonesian government authorities and agencies about the decision.
For further information:
Gem Diamonds Limited
Clifford Elphick, Chief Executive OfficerGlenn Turner, Chief Commercial Officer Tel: +44 (0) 203 043 0280
Richard Chetwode, Investor Relations Tel: +44 (0) 203 043 0280 Mob: +44 (0) 759 0064 883
Gem Diamond Technical Services Ltd
Angela Parr, Media Mob: +27 (0) 83 578 3885
Pelham PR
Candice Sgroi Tel: +44 (0) 207 743 6376
James Henderson Tel : +44 207 743 6673
About Gem Diamonds:
Gem Diamonds Limited (LSE: GEMD) was formed with the aim of becoming a leading supplier of high quality diamonds. Principally through Letšeng and Ellendale, Gem Diamonds has moved a long way to realising that vision for rough diamonds. With the acquisition of polishing technologies and expertise, Gem Diamonds intends to achieve the same in relation to selected polished diamonds.
Gem Diamonds has a specific focus towards higher value diamonds, a segment of the market expected to deliver superior long term returns. The Company produces some of the world's most remarkable white diamonds from its Letšeng mine and rare fancy yellow diamonds from its Ellendale mine and an array of coloured diamonds from its Cempaka mine.
Established in July 2005, Gem Diamonds listed on the main board of the London Stock Exchange in February 2007 raising US$635 million. It is currently capitalised at approximately £170million.
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