Gem Diamonds Firm on No-Dividend Policy

RAPAPORT... Nearly a quarter of Gem Diamonds' shareholders voted againstreelecting CEO Clifford Elphick to the company's board, in an effort to force approval of share buybacks and dividends. The board directors opposed implementing those measures because of the current weakness in the diamond market and the need to maintain appropriate cash reserves, the miner noted.Although Elphick's reelction passed, the miner spoke to the shareholders involved about their concerns. "We understand that the significant votes received [are]principally related to the board's approach on share buybacks, dividends andboard composition," Gem Diamonds said in a company filing following its annual general meeting last week. A similar portion of shareholders also voted against retainingboard member Harry Kenyon-Slaney for another term. Shares in Gem Diamonds fell 8% Friday following theannouncement, sending the stock to its lowest point this year. Image: Clifford Elphick. (Gem Diamonds)