KEY POINTS
- Gem Diamonds’ first-half revenue jumped 32% to $59.7 million, while underlying Ebitda recovered to $8.6 million.
- The company returned to a $0.6 million attributable profit, supported by stronger diamond prices and lower costs.
- Letšeng recovered 41,695 carats, while Gem Diamonds is exploring ways to access higher-value Satellite Pipe ore before 2031.
London-listed diamond producer Gem Diamonds delivered a significantly stronger financial performance in the first half of 2026, helped by improved diamond quality, better prices and cost-cutting measures implemented across the business.
For the six months ended June 30, the company’s revenue rose by 32% to $59.7 million, compared with the corresponding period in 2025. Chief executive officer Clifford Elphick attributed the improvement largely to stronger diamond prices achieved during the period and the quality of stones recovered from the company’s operations, particularly its Letšeng mine in Lesotho.
Elphick said measures introduced in July 2025 to structurally reduce costs, together with an extension of royalty relief at Letšeng, were beginning to produce tangible benefits.
According to the CEO, the initiatives have significantly lowered the company’s cost base and strengthened its ability to withstand continued weakness and uncertainty in the global diamond market.
Gem Diamonds swings back to profit
The improved operating performance was reflected in the company’s earnings.
Underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) increased to $8.6 million in the first half of 2026, compared with an underlying Ebitda loss of $2.6 million recorded during the same period in 2025.
Gem Diamonds also returned to profitability at the attributable level, reporting a profit of $0.6 million, compared with an attributable loss of $11.7 million in the prior-year period.
Earnings per share similarly improved to $0.05, reversing a loss per share of $0.08 reported in the first half of 2025.
The stronger financial position also reduced the company’s reliance on debt. Gem Diamonds ended the period with $20.2 million in cash and $69.9 million in unused financing facilities.
Net debt stood at just $500,000 at June 30, a substantial improvement from the $20.1 million recorded at the end of December 2025.
Operationally, Gem Diamonds treated 2.6 million tonnes of ore during the six-month period and recovered 41,695 carats of diamonds.
Production remained broadly in line with the company’s long-term mine plan for Letšeng, which targets annual ore throughput of approximately five million tonnes.
The quality of the diamonds recovered continued to support the mine’s position in the higher-value segment of the market. Gem Diamonds achieved an average sales price of $1,395 per carat during the period.
