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• Posted by: Makalang Mokere
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FOR IMMEDIATE RELEASE
23 July 2025
OPERATIONAL AND COST MANAGEMENT MEASURES IN RESPONSE TO MARKET CONDITIONS
Considering the prolonged weakness in global diamond prices, compounded by a weak US dollar and ongoing US tariff uncertainties, Letšeng Diamonds (Pty) Ltd (the “Company”) is implementing decisive measures to conserve cash, protect shareholder value and the sustainability of the operation. While the Company has met its production targets, it has not been immune to the sustained pressure on rough diamond prices and adverse exchange rate movements.
The Company has comprehensively reviewed its short-term mine plan and cost base to significantly reduce operational expenditure. Key short-term cashflow optimisation measures include:
• Mining activities: The mine will continue to operate both plants at existing treatment volumes whilst waste mining volumes in both the Main and Satellite pits have been reduced to a minimum for an initial 12-month period without compromising the longer-term life of mine plan.
• Workforce Rationalisation: The Company regrets that an approximately 20 percent reduction in workforce may be necessary to align with the scaled-back waste mining operations, and other necessary operational changes. Engagement with employees and relevant stakeholders has commenced and is ongoing to ensure that the rationalisation process is managed responsibly and transparently.
The Company remains committed to its long-term strategy of producing exceptional quality diamonds and is confident that the measures being implemented will position the Company for a strong recovery when market conditions improve. The Company will continue to monitor market developments closely and provide further updates as appropriate.
For any further information regarding this statement please contact the office of Letšeng Diamonds Chief Executive on +266 2222 1800.
This media statement is an official notice issued by Letšeng Diamonds.