Half Year 2025 Results
Gem Diamonds Limited (LSE: GEMD) (“Gem Diamonds”, the “Company” or the “Group”) announces its Half Year Results for the six months ended 30 June 2025 (the “Period”).
FINANCIAL RESULTS:
- Revenue of US$45.4 million (H1 2024: US$78.0 million)
- Negative underlying EBITDA of US$2.6 million (H1 2024: positive underlying EBITDA of US$19.1 million)
- Attributable loss of US$11.7 million after goodwill impairment of US$10.7 million (H1 2024: attributable profit of US$2.1 million)
- Loss per share of 8.4 US cents (H1 2024: earnings per share of 1.5 US cents)
- Cash on hand of US$6.8 million (31 December 2024: US$12.9 million) as at 30 June 2025 (US$5.4 million attributable to Gem Diamonds) and unutilised facilities of US$55.8 million
- Net debt of US$28.2 million (31 December 2024: US$7.3 million)
FINANCIAL RESULTS:
Letšeng
- Zero fatalities and zero lost time injuries
- Recovered 47 125 carats (H1 2024: 55 873 carats)
- Waste tonnes mined of 1.7 million tonnes (H1 2024: 3.2 million tonnes)
- Ore treated of 2.5 million tonnes (H1 2024: 2.5 million tonnes)
- Average price of US$1 008 per carat achieved (H1 2024: US$1 366 per carat)
- The highest dollar per carat achieved for a white rough diamond during the Period was US$26 441 per carat
Goodwill impairment
Taking into account the prevailing market conditions, current diamond prices and exchange rates, the recoverable amount of Letšeng was assessed at Period end and an impairment of US$10.7 million was recorded to bring the carrying value in line with the recoverable amount. The impairment was allocated to goodwill which is now fully impaired.
Safety performance
Letšeng recorded zero LTIs during the Period (H1 2024: three), resulting in a zero LTIFR (2024: 0.18) and an AIFR of 0.51 (2024: 0.61), respectively.
Response to market conditions
As reported in the trading update published on 23 July 2025, Gem Diamonds has implemented decisive measures to conserve cash and protect shareholder value in response to the prolonged weakness in global diamond prices, compounded by a weak US dollar and ongoing US tariff uncertainties. While the Company has met its production targets in H1 2025, it has not been immune to the sustained pressure on rough diamond prices.
Key short-term cashflow optimisation measures implemented include the short-term reduction of waste and access to additional Satellite Pipe ore to be treated, workforce rationalisation due to the scaled-back activities and a reduction in corporate costs.
Letšeng’s long-term mine plan
Further waste mining reduction initiatives were implemented at Letšeng. Consequently, the life of mine has reduced from 2039 to 2035 using current pricing assumptions and costs. Annual throughput of approximately 5.0 million ore tonnes has been maintained. Should market conditions improve, the flexibility exists to again extend the life of mine.
Gem Diamonds remains committed to its long-term strategy of producing exceptional quality diamonds and is confident that the measures implemented will position the Group for a strong recovery when market conditions improve.
The Company’s production and cost forecasts for FY2025 remain in line with the revised guidance as published in the trading update on 23 July 2025.
Commenting on the results today, Clifford Elphick, Chief Executive Officer of Gem Diamonds, said:
“The industry continues to face significant challenges. Sustained pricing pressure, softer demand in key markets, ongoing macroeconomic and geopolitical uncertainty, and tariff uncertainties in respect of India, combine to create difficult trading conditions.
H1 2025 production targets were achieved, however, revenue decreased significantly. In response, key decisions to adapt the mine plan to reduce costs, necessitated the unfortunate retrenchment of 240 employees at Letšeng. While deeply regrettable, these actions position Letšeng to operate sustainably.”
The Company will host a live audio webcast presentation of the half year results today, 4 September 2025, at 9:30 BST. This can be viewed by registering on the Company’s website using the following link: https://gemdiamonds.zoom.us/webinar/register/WN_50gMcwzXTmOr37OU3-ARkQ.
The page references in this announcement refer to the Half Year Report 2025, which can be found on the Company’s website: www.gemdiamonds.com.
The Gem Diamonds Limited LEI number is 213800RC2PGGMZQG8L67
For further information:
Gem Diamonds Limited
Kiki Constantopoulos, Company Secretary
ir@gemdiamonds.com
Celicourt Communications
Mark Antelme / Felicity Winkles
Tel: +44 (0) 207 777 6424
About Gem Diamonds:
Gem Diamonds is a leading global diamond producer of high value diamonds. The Company owns 70% of the Letšeng mine in Lesotho. The Letšeng mine is famous for the production of large, top colour, exceptional white diamonds, making it the highest dollar per carat kimberlite diamond mine in the world. www.gemdiamonds.com