Gem Diamonds Limited announced an operational update on its Letšeng mine. It noted that extreme weather conditions including excessive snow falls and severe winds across the Maluti Mountains in Lesotho where the Letšeng Mine is located, has limited access to the mine.

Due to the weather conditions, the overhead power lines have been damaged and the company has installed standby generators at the mine to mitigate some of the impact, allowing the plants to operate, albeit at reduced rates.

The Lesotho Electricity Company (LEC) is currently on site carrying out repairs to damaged overhead power lines. External power supply is expected to be fully restored in the short term.

The company’s full year guidance for ore tonnes treated and operating costs may need to be re-assessed but it believes the strong operational performance in H1 would help to see carats recovered are not expected to be affected materially.

Letšeng has provided accommodation and food to approximately 250 local people who were unable to cope during the severe weather. The Deputy Prime Minister and a government delegation have visited the mine and thanked the management for its assistance.