Gem Diamonds Reports $104M Loss as Letšeng Diamond Mine Impairment and Weak Diamond Prices Hit Earnings
London-listed Gem Diamonds reported a sharp decline in financial performance for the year ended December 31, 2025, as continued weakness in the global diamond market weighed on earnings.
The company posted a loss of $9.1 million before exceptional items, compared with a profit of $8.1 million in 2024.
After accounting for exceptional items, the attributable loss widened significantly to $104 million, up from a $2.9 million loss the previous year.
The result was largely driven by a $77 million impairment at the Letšeng Diamond Mine. The write-down reflects sustained pressure in rough diamond prices and the impact of a weaker US dollar against the Lesotho loti.
Loss per share before impairments stood at $0.061, while loss per share after impairments reached $0.74, compared with earnings per share of $0.021 in 2024.
Net debt increased to $20.1 million at year-end, up from $7.3 million a year earlier. The company said it plans to review its debt facilities ahead of their expiry in December 2026, while maintaining access to $68 million in undrawn funding.
Operationally, the company generated underlying earnings of $3.9 million from the recovery of 90,354 carats during the year.
However, the average price achieved declined to $1,105 per carat, down from $1,390 per carat in 2024. The highest price achieved was $34,717 per carat for a white rough diamond.
CEO Clifford Elphick said the company has implemented a “business resilience programme” in the second half of the year to safeguard operations.
“These measures are critical to ensuring that Letšeng remains a sustainable operation capable of supporting employees, communities, and stakeholders over the long term,” he said.
Elphick added that the steps taken have positioned the company to benefit from a potential recovery in diamond markets.
On the sustainability front, Letšeng exceeded its environmental targets, achieving a 30% reduction in Scope 1 and 2 emissions relative to a 2021 baseline well ahead of its 2030 goal.
