Gem Diamonds Returns to Profit as Rough Prices Rise

(IDEX Online) - Gem Diamonds returned to profit in the first half of 2026 as higher rough diamond prices at its Letseng mine in Lesotho lifted revenue despite lower recovered carat volumes.

The company reported attributable profit of $0.6 million for the six months ended June 30, compared with a loss of $11.7 million in the first half of 2025. Revenue rose 32% to $59.7 million from $45.4 million, while underlying EBITDA improved to $8.6 million from negative $2.6 million.

Cash on hand increased to $20.2 million at June 30 from $3.8 million at the end of 2025, while net debt fell to $0.5 million from $20.1 million. The group also had $69.9 million in unutilized facilities.

The improvement was supported by a higher average rough diamond price at Letseng, which rose to $1,395 per carat from $1,008 a year earlier. The mine recovered 41,695 carats during the period, down from 47,125 carats in the first half of 2025.

Ore treated increased to 2.6 million tonnes from 2.5 million tonnes, while waste mined fell 82% to 0.3 million tonnes from 1.7 million tonnes. The company sold eight diamonds for more than $1 million each during the period.

Clifford Elphick, CEO of Gem Diamonds, said: "We are pleased to report a significantly improved financial performance in H1 2026 compared to the same period last year. Revenue increased by 32%, supported by improved production quality and stronger prices achieved."

He added: "The structural cost measures implemented in July 2025, as well as the extension of Letseng's royalty relief, are delivering tangible results. Together, these initiatives have materially reduced our cost base as we navigate the challenging global diamond market."

The highest price achieved was $32,908 per carat. Gem Diamonds said production and cost forecasts for full-year 2026 remained in line with guidance.

The company's revolving credit facilities expire in December 2026, and discussions with lenders regarding their renewal or extension are underway.

The latest results were announced on September 3, 2026, covering the six months ended June 30. Letseng's production volumes were in line with its planned production and long-term mine plan, which calls for annual ore throughput of about 5 million tonnes.

Gem Diamonds is headquartered in London and owns 70% of the Letseng mine in Lesotho. Letseng is renowned for producing large, high-quality white diamonds and is the world's highest dollar-per-carat kimberlite diamond mine.

Picture shows: A 346.99-carat Type II white diamond recovered at the Letseng diamond mine on June 21, 2026, and named the "Lesotho Jubilee."