Gem Loss Widens as Mine Value Slashed by $77m
March 18, 26
(IDEX Online) - Gem Diamonds swung to an annual loss before exceptional items of $9.1m in 2025, compared with a profit of $8.1m in 2024.
A depressed rough diamond market and weaker US dollar against the Lesotho loti triggered a $77.5m impairment to the book value of its flagship Letseng mine.
Combined with other exceptional items, this drove an attributable loss of $104m for the year to 31 December 2025 - versus a $2.9m loss the prior year - according to the company's Annual Report and Accounts released today (18 March).
Revenue fell 36% to $98.4m as average price per carat dropped 21% to $1,105 from $1,390, despite Letseng's status as the world's highest-value kimberlite diamond mine and a peak tender price of $34,717 per carat for a white rough stone.
Gem scaled back operations amid the natural diamond downturn, cutting a fifth of its workforce and reducing executive pay under a business resilience program launched in H2 2025.
"The continued weakness in the diamond market required decisive action to protect the financial viability of Letseng and the group," CEO Clifford Elphick said in the report.
"These measures ensure Letseng remains sustainable, supporting jobs, communities and stakeholders long-term."
Pic shows Letseng mine, Lesotho.