Industry News by Nemesis

Gem Pays Lesotho $24.55 Million in Royalties, Taxes

June 16, 2019

Gem Diamonds, which operates the Letšeng mine, in Lesotho said it paid $24.55-million in royalties and taxes for the 2018 financial year. 


It said in a report that it paid $6.16-million in taxes to the Lesotho Revenue Authority and $18.39-million in royalties to the government. 


Gem Diamonds said last March that its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rose 69% to $82.3 million in 2018 compared to $45 million, the previous year, mainly due to the increase in revenue generated, coupled with the ‘successful’ implementation of various business transformation initiatives and by maintaining strict cost discipline.  


Its revenue also jumped 25% to $267 million from the previous year’s $214.3 million due to a record number of large diamond recoveries at Letšeng.  


Gem Diamonds recovered 15 diamonds greater than 100 carats in 2018, a record for a single calendar year.  


The company produced 126,875 carats at Letšeng in 2018 compared with 111,811 carats in 2017.  

 

Source: Rough&Polished

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