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Gem Diamonds returns to profit as Letšeng stone prices rise
For the six months ended June 30, Gem Diamonds swung to a $600,000 profit, helped by a 38% jump in its average rough diamond price and reduced costs.
Gem Diamonds returned to profit in the first half, citing stronger pricing for its Letšeng large diamonds and cost reductions as it navigated a difficult global diamond market, Mining.com reported. For the six months ended June 30, the company posted a $600,000 profit, reversing an $11.7 million loss a year earlier. Revenue rose 32% to $59.7 million, while the average rough diamond price increased 38% to $1,395 per carat, supporting an improvement in underlying earnings to $8.6 million from a $2.6 million deficit.
Management also pointed to structural cost measures put in place in July 2025, and an extension of Letšeng’s royalty relief, as driving tangible results by lowering the company’s cost base. CEO Clifford Elphick said the initiatives helped reduce costs as Gem dealt with challenging market conditions.
Shares in Gem Diamonds surged as much as 70% to 11p after the results. The company said it cut net debt to $500,000 as of June 30, from $20.1 million at the end of December, and plans to source production exclusively from the Main Pipe for the remainder of the year while reviewing options for earlier access to Satellite Pipe ore.
Mining.com also noted that the broader diamond market remains pressured by macroeconomic volatility and competition from synthetic diamonds, particularly in smaller and lower-quality categories. Gem said it expects to rely on Letšeng’s premium large stones and tighter costs while it explores alternative mining methods.