Botswana – Gem Diamonds profits nearly halved after mothballing mine

Reuters

Gem Diamonds Ltd (GEMD.L) reported on Wednesday a 47 percent fall in its full-year pretax profit, hurt by an impairment charge after it mothballed the Ghaghoo mine in Botswana due to a fall in diamond prices.

The company recorded an impairment provision of $176.5 million after its move last month to place the Ghaghoo mine under care and maintenance with immediate effect.

Gem Diamonds, which mines diamonds from the Letseng mine in Lesotho and the Ghaghoo mine in Botswana, said its full-year pretax profit fell to $52.4 million from $99 million, a year earlier.

(Reporting by Justin George Varghese in Bengaluru; Editing by Amrutha Gayathri)

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