Gem Diamonds released its results for the six months ended 30 June 2025, revealing a period of severe financial strain driven by an ongoing crisis in the global diamond market.
Group revenue plummeted 42% to $45.4 million, down from $78 million in the first half of 2024.
It reported an attributable loss of $11.7 million, which includes a non-cash goodwill impairment of $10.7 million.
This compares to an attributable profit of $2.1 million for the same period in 2024.
Gem Diamonds said the significant drop in revenue and slip into a loss, prompted cost-cutting measures that included the retrenchment of 240 employees at its flagship Letšeng mine in Lesotho.
“While deeply regrettable, these actions position Letšeng to operate sustainably through these exceptionally tough market conditions," said company chief executive Clifford Elphick.
The average price per carat achieved fell sharply to $1,008 from $1,366 a year earlier. Furthermore, the volume of carats sold decreased to 44,360 from 56,994 in the first half of 2024.
This reduction was driven by the planned processing of a higher proportion of lower-grade ore from the Main Pipe, which made up 68% of treated ore compared to 56% in the prior period.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
