Like most diamond miners, London-listed Gem Diamonds has been experiencing marked weakness in the diamond market, which led to the company reporting a loss of $9.1-million before exceptional items for the year ended December 31, 2025.

This compares with a profit of $8.1-million in the prior year.

The group reports an attributable loss after exceptional items of $104-million for the year, compared with an attributable loss of $2.9-million in the prior year. This was mostly owing to a $77-million impairment of the company’s carrying value in the Letšeng diamond mine, in Lesotho, as a result of prolonged downward pressure in the rough diamond market and a weaker dollar against the Lesotho loti.

The loss a share before the impairments amounts to $0.061 in the year under review, while the loss a share after the impairment amounts to $0.74 apiece. This compares with earnings a share of $0.021 reported for the 2024 financial year.

As of December 31, Gem Diamonds had net debt of $20.1-million, which widened from net debt of $7.3-million in the prior year. The group aims to review its facilities before they expire in December 2026.

Gem has $68-million of undrawn facilities available.

The company managed to generate underlying earnings of $3.9-million from the recovery of 90 354 ct in the reporting year, with an average value of $1 105/ct having been achieved. In 2024, the company realised an average value of $1 390/ct sold.

Highest dollar per carat value achieved in the year was for a white rough diamond at $34 717/ct.

Gem CEO Clifford Elphick says the company has taken decisive action to protect the financial viability of its operations, which led to the launch of a ‘business resilience programme’ in the second half of the reporting year.

“These measures are essential to ensure that Letšeng remains a sustainable operation capable of supporting employment, communities and stakeholders over the longer term.”

Elphick is confident that the measures implemented in the second half of the year have better equipped the group to be well positioned for a recovery when market conditions improve.

Meanwhile, Letšeng achieved its decarbonisation target of a 30% reduction of scope 1 and 2 emissions in the year under review, against a 2021 baseline, ahead of its 2030 target date.