Despite a tough diamond market in 2024, London-listed Gem Diamonds delivered strong financial results, driven by cost containment, operational efficiencies, and strategic capital allocation, CEO Clifford Elphick reported.
Global economic uncertainty, persistent inflation, and geopolitical tensions weighed on diamond prices throughout the year.
However, Gem Diamonds achieved a 10% revenue increase, reaching $154.2 million, primarily due to the sale of 13 diamonds exceeding 100 carats each.
Cost-cutting measures contributed to a 95% surge in EBITDA, reaching $29.7 million, while net profit rose to $8.1 million, with earnings per share at $0.02. The company ended the year with net debt of $7.3 million.
Operational improvements at the Letšeng mine in Lesotho led to greater efficiency. A targeted ore feed initiative improved plant utilization to 80% in 2024, up from 78% in 2023 and 75% in 2022.
The mine produced 105,012 carats, with an average value of $1,390 per carat. The highest value per carat for a white rough diamond was $41,007.
The company achieved its lowest all-injury frequency rate on record (0.61), with zero fatalities and only three lost-time injuries.
Looking ahead, Elphick emphasized the safe implementation of Letšeng’s updated mine plan, which aims to reduce waste volumes.
“The next four years will be challenging due to limited access to higher-value satellite ore, but we are focused on optimizing the mine plan to maintain profitability,” he stated.
Encouragingly, 2025 has begun with modest price improvements for rough and polished diamonds, and the company remains optimistic about market recovery.
