Ghaghoo downsizing to reduce cash �burn� � CEO :: Mmegi Online

The impending downsizing of operations at Gem Diamonds’ Ghaghoo Mine will preserve cash for the London-based miner in a challenging period characterised by low rough prices.

According to the company’s CEO, Clifford Elphick it was considered prudent to restructure Ghaghoo in the short term in order to meet these objectives through downsizing the operation.

“The depressed market has impacted the prices achieved for our Ghaghoo production. Consequently, in the current climate, and after reviewing various options, it was considered prudent to downsize the operation for 2016 to reduce cash consumed during its final development. It is important to note that Ghaghoo remains a key future option for the group and its expansion opportunities, when diamond prices improve, will further deliver on the board’s strategic plan,” he said.

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