Gem Diamonds Limited: SWOT Analysis & Company Profile by BusinessReview

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									Gem Diamonds Limited

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Gem Diamonds Limited: SWOT Analysis &
Company Profile


Reference code: BRMN0165CP10-Q2

Published: Oct 2010




Business Review
John Carpenter House
7 Carmelite Street
London EC4Y 0BS
United Kingdom
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813



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Gem Diamonds Limited - SWOT Profile                                                 Page 1
Gem Diamonds Limited

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Gem Diamonds Limited - Company Overview

   Gem Diamonds Limited (GEMD) is one of the leading global diamond manufacturers with diamond mining operations
across the world. Its portfolio comprises lamproite and kimberlite mines in Australia and Lesotho; development projects
and exploration assets in Botswana, Angola, the Central African Republic and Indonesia. The company produces yellow
diamonds from its Ellendale Mine and white diamonds from its Letseng Mine. GEMD is also involved in cutting and
polishing of rough diamonds. In addition, it offers technical, financial and management consulting services to the diamond
industry. The company has operations and projects in Australia, Angola, Botswana, Central African Republic, Dubai,
Mauritius, Lesotho and Indonesia. GEMD is headquartered in London, UK.


Financial Performance

The company reported revenues of (U.S. Dollars) USD 244.40 million during the fiscal year ended December 2009, a
decrease of 17.68% from 2008. The operating profit of the company was USD 37.37 million during the fiscal year 2009,
whereas the company reported an operating loss of USD 367.53 million during 2008. The net profit of the company was
USD 15.53 million during the fiscal year 2009, whereas the company reported a net loss of USD 552.82 million during
2008.




Gem Diamonds Limited - Key Facts

Gem Diamonds Limited, Key Facts

                                  2 Eaton Gate, London, , SW1W
                                                                    Ticker Symbol, Stock             GEMD (London Stock Exchange
Corporate Address:
                                  9BJ, United Kingdom               Exchange                         (LON))



Telephone                         + 44 20 30430280                  No. of Employees                 1,530



Fax                               + 44 20 30430281                  Financial Year End               December



URL                               www.gemdiamonds.com               Revenue (in USD Million)         244.40



Industry                          Metals and Mining

                                  Australia, Indonesia, United Kingdom, Central African Republic, Lesotho, Mauritius, British Virgin
                                  Islands, Australia, Indonesia, United Kingdom, Central African Republic, Lesotho, Mauritius, British
Locations
                                  Virgin Islands, Australia, Indonesia, United Kingdom, Central African Republic, Lesotho, Mauritius,
                                  British Virgin Islands
Source: Annual Report, Company Website, Primary and Secondary Research




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Gem Diamonds Limited - SWOT Profile                                                                                          Page 2
Gem Diamonds Limited

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Gem Diamonds Limited - Business Description

Gem Diamonds Limited (GEMD) is a diamond mining and marketing company. It offers white diamonds and rare fancy
yellow diamonds. The company is also engaged in cutting and polishing of rough diamonds, as well as in providing
technical, financial, and management consulting services to the diamond industry.

In the fiscal year 2009, the company produced 289,703 carats of diamonds and sold 414,049 carats of diamonds.

The company's portfolio comprises producing kimberlite and lamproite mines in Lesotho and Australia; development
projects and exploration assets in Angola, Botswana, the Central African Republic and Indonesia. It produces white
diamonds from its Letseng Mine and yellow diamonds from its Ellendale Mine.

In Lesotho, it owns 70% of Letseng Diamonds in partnership with the Government of the Kingdom of Lesotho which owns
the remaining share. The Letseng Diamond mine is located in the Maluti Mountains. In the fiscal year 2009, annual
production from this mine was 90,878 carats.

In Australia, the company's Kimberley Diamond Company NL owns 100% of the Ellendale mine that comprises of various
lamproitic pipes, of which the E9 pipe is currently being mined. Ellendale mine produces fancy and vivid yellow diamonds.
The mine produced 198,825 carats of rough diamonds in the fiscal year 2009.

In Indonesia, the company's BDI Mining owns 80% of the Cempaka alluvial diamond mine in south Kalimantan in
partnership with the Government of Indonesia which owns the remaining share. Cempaka mine's resource includes white
diamonds and an array of colored diamonds. This mine was under care and maintenance in 2009.

In Central African Republic (CAR), GEMD holds a 75% interest in Gem Diamonds Centrafrique SA (Centrafrique) in
partnership with the Government of the CAR which holds the remaining share. Centrafrique holds exclusive exploration
and mining rights to the Mambere concession. The mines‟ exploration and sampling activities are under care and
maintenance since November 2008.

The company's Gope Exploration Company is the holder of a retention license covering the Gope 25 kimberlite deposit in
the Central Kalahari Game Reserve in Botswana.

GEMD signed a cooperation agreement in 2007 with Avantis Angola Limited with respect to a preliminary feasibility report
to be produced on the Chiri kimberlite deposit in the Lunda Sul Province of Angola.

The company's geographical regions are categorized as Lesotho; Australia; Indonesia; Botswana; and BVI, RSA and the
UK. During the fiscal year ended December 2009, the company generated USD 163.89 million from Lesotho region, USD
76.71 million from Australia region, USD 1.06 million from Indonesia region, USD 0.003 million from Botswana region, and
USD 2.75 million from BVI, RSA and the UK region.




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Gem Diamonds Limited - SWOT Profile                                                                              Page 3
Gem Diamonds Limited

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Gem Diamonds Limited - Major Products and Services

Gem Diamonds Limited is a diamond mining company. The key products and services offered by the company include the
following:

Gem Diamonds Limited, Major Products and Services
Products:

White Diamonds

Fancy and Vivid Yellow Diamonds

Services:

Cutting and Polishing of Rough Diamonds

Technical, Financial and Management Consulting Services to the Diamond Industry
Source: Annual Report, Company Website, Primary and Secondary Research




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Gem Diamonds Limited - SWOT Profile                                                                       Page 4
Gem Diamonds Limited

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Gem Diamonds Limited - History

Gem Diamonds Limited, History

    Year                Event type                                                  Description


                                            The company acquired Calibrated Diamonds, including its state of the art diamond
   2008      Acquisitions/Mergers/Takeovers processing assets, intellectual property and management expertise from Petra
                                            Diamonds Limited.


                                                The company entered into a conditional Co-Operation Agreement and an Option
   2007      Contracts/Agreements
                                                Agreement with Avantis Angola Limited.


   2007      Acquisitions/Mergers/Takeovers The company acquired 100% of Gope Exploration Company (Pty) Ltd.


                                                The company's subsidiary, Gope Exploration Company Limited announced that the
   2007      Others                             Government of the Republic of Botswana lifted the suspension of the Retention License
                                                over the Gope area.


                                                The company entered into an agreement to purchase the 50.01% of Kabongo
   2007      Contracts/Agreements
                                                Development Company s.p.r.l from Almesta Holdings Limited.


            
								
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