GEM pulls out of running for Ekati

[miningmx.com] – GEM Diamonds CEO, Clifford Elphick, said the
company had withdrawn from the running for Ekati, the diamond mine currently being
sold by BHP Billiton, adding that it would pursue organic growth.

In an interview with Reuters, Elphick said the focus would fall on a $280m project to
double the capacity of its Letseng mine in Lesotho by 2014, an operation which was
instrumental in firing GEM to a pretax profit of $155.7m, compared with $54.5m a
year earlier. Attributable profit jumped to $67.7m from $20.2m. Letseng boosted
output nearly a quarter.

“Our approach to valuation didn’t meet the sellers’ expectations. We were a bit stingy,
if the truth be told,” Elphick told Reuters.

“We are always on the lookout for opportunities to grow the company in a sensible
way. We have looked at lots of opportunities, but for various reasons they have not
made it over the hurdles we have set for ourselves.”

Elphick added, however, that GEM might not sell its Ellendale mine in Australia owing
to improving diamond prices. The company as also focusing on its Ghaghoo project in
Botswana.