Report on Payments to Governments

RNS Number : 8351R
Gem Diamonds Limited
19 June 2018
 

 

 

 

19 June 2018

GEM DIAMONDS LIMITED 

 

Report on Payments to Governments

for the year ended 31 December 2017

 

 

Introduction

This report provides an overview of the payments made to governments by Gem Diamonds Limited and its subsidiaries (the Group) for the 31 December 2017 financial year, as required under the United Kingdom's (UK) Report on Payments to Governments Regulations 2014 (as amended December 2015). These UK Regulations enact domestic rules in line with Directive 2013/34/EU

(the EU Accounting Directive (2013)) and apply to companies that are involved in extractive activities.

 

This report is also intended to satisfy the requirements of the Disclosure and Transparency Rules of the Financial Conduct Authority in the United Kingdom.

 

Basis for preparation

Reporting entities

This report includes payments to governments made by subsidiaries in the Group which are engaged in extractive activities. During the 2017 financial reporting period, extractive activities were conducted in Lesotho and Botswana.

 

Extractive activities

Extractive activities relate to the exploration, prospection, discovery, development and extraction of minerals, oil, natural gas deposits or other materials. Gem Diamonds Limited, through its subsidiaries, is engaged in diamond mining activities.

 

Scope of payments

The report discloses only those significant payments made to governments arising from extractive activities.

 

Government

Government includes any national, regional or local authority of a country. It includes a department, agency or undertaking (i.e. corporation) controlled by that authority.

 

Payment types disclosed at legal entity level

Production entitlements

There were no payments of this nature for the year ended 31 December 2017.

 

Taxes

These are payments on the entity's income, production or profits, excluding taxes levied on consumption such as value added taxes, personal income taxes or sales taxes in line with in-country legislation.

 

Royalties

These are payments for the right to extract diamonds and are determined on percentage of sales in terms of in-country legislation and / or mining lease agreements.

 

Dividends

These are dividend payments, other than dividends paid to a government as an ordinary shareholder of an entity unless paid in lieu of production entitlements or royalties. There were no dividend payments of this nature to governments for the year ended 31 December 2017.

 

Signature, discovery and production bonuses

There were no payments of this nature to governments for the year ended 31 December 2017.

 

Licence fees

These are fees paid for acquisition of leases and licences, including annual renewal fees, in order to obtain and maintain access to the areas in which extractive activities are performed. These payments were not above the reportable threshold at entity level and have therefore not been reported.

 

Payments for infrastructure improvements

There were no payments of this nature to governments for the year ended 31 December 2017.

 

Cash flow basis

Payments reported are on a cash flow basis and may differ to amounts reported in the Gem Diamonds Limited 2017 Annual Report and Accounts which are prepared on an accrual basis.

Materiality level

In line with the guidance provided in the Report on Payments to Governments Regulations, payments made as a single payment, or as a series of related payments, that are equal to or exceed US$111 000 (£86 000) are disclosed in this report. All payments below this threshold have been excluded.

 

Reporting currency

The payments to government have been reported in US dollar.

 

Payments made in currencies other than US dollar were translated at the relevant annual average rate for the year ended 31 December 2017.

 

 

 

Summary report

 

Operation

Country

Taxes

US$'000

Royalties

US$'000

Total

US$'000

Letšeng Diamonds (Proprietary) Limited

Gem Diamonds Botswana (Proprietary) Limited

Lesotho Botswana

229

-

17 887

   230

18 116

   230

Total

     229

18 117

18 346

 

Lesotho

 

 

Letšeng Diamonds (Proprietary) Limited

Taxes US$'000

Royalties US$'000

Total US$'000

 

 

 

 

Lesotho Revenue Authority

229

-

229

Government of Kingdom of Lesotho

-

17 887

17 887

 

Botswana

 

 

 

 

Gem Diamonds Botswana (Proprietary) Limited

Taxes US$'000

Royalties US$'000

Total US$'000

 

 

 

 

Government of Botswana

-

230

230

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
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