London-listed Gem Diamonds reported a significantly improved financial performance for the six months ended June 30, compared with the same period last year, with revenue having increased by 32% to $59.7-million, supported by improved production quality and stronger prices achieved, CEO Clifford Elphick highlights.

“The structural cost measures implemented in July 2025, as well as the extension of Letšeng's royalty relief are delivering tangible results. Together, these initiatives have materially reduced our cost base as we navigate the challenging global diamond market,” he explains.

Underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) were $8.6-million, compared with an underlying loss before interest, taxes, depreciation and amortisation of $2.6-million in the first half of 2025.

Attributable profit was $0.6-million, compared with the attributable loss of $11.7-million reported for the prior comparable quarter.

Earnings a share increased to $0.005, compared with the loss a share of $0.084 reported for the prior comparable quarter.

Gem ended the six months under review with cash on hand of $20.2-million and unused facilities of $69.9-million.

Net debt was $500-million, compared with $20.1-million as at December 31, 2025.

Ore treated was 2.6-million tonnes, with 41 695 ct of diamonds recovered.

Production volumes are in line with Letšeng’s planned production and long-term mine plan to maintain yearly ore throughput of about five-million tonnes.

An average price of $1 395/ct was achieved from the sale of diamonds, with the highest dollar per carat price achieved for a white rough diamond during the period $32 908/ct.

The diamond market remained challenging during the period, with rough and polished diamond prices continuing to be affected by macroeconomic volatility and synthetic diamonds which have negatively impacted on market prices in the smaller-size and lower-quality segments of the market.

Letšeng's diamonds are said to have been less impacted owing to their quality and size, with encouragingly strong demand leading to an improvement in prices during the first half.

The group’s revolving credit facilities expire in December, and discussions with lenders regarding the renewal or extension of these facilities are underway.

Gem reiterates that the timing and extent of any sustainable recovery in the diamond market remains uncertain.

In the near term, the group will remain focused on maintaining the cost management benefits achieved through the BR programme to preserve cash, while continuing to operate Letšeng safely, responsibly and efficiently, it says.

Alternative mining methods are being investigated to access the higher-value Satellite Pipe ore sooner than 2031 as per Letšeng’s current mine plan.