Gem Diamonds Letseng

Gem Diamonds to cut jobs, salaries amid industry crisis

Gem Diamonds has become the latest casualty in a deepening crisis engulfing the global diamond industry, announcing sweeping cost-cutting measures as the market buckles under falling prices and the growing popularity of lab-grown alternatives.

The Africa-focused diamond producer reported a 43% drop in revenue to $44.7 million for the first half of its financial year. Carat sales fell 22% to 44,360, while the average price per carat plunged 26% to $1,008.

In response, it said it would reduce operating costs by $1.4 million to $1.6 million per month and cut around 250 jobs, or 20% of its workforce, at its Letšeng mine in Lesotho. Executives have also taken voluntary salary reductions.

“Considering the prolonged weakness in global diamond prices, compounded by a weak dollar and ongoing US tariff uncertainties, Gem has implemented decisive measures to conserve cash and protect shareholder value,” the company said.

Despite meeting production targets, Gem Diamonds admitted it has not been shielded from sustained pressure on rough diamond prices and adverse currency movements. Investors reacted accordingly, with the company’s shares falling more than 20% in early trading on the London Stock Exchange. They partially rebound to 5.5 pence in late trading, valuing the company at £7.7 million ($10 million).

Gem Diamonds’ measures mirrors those of its peers. just last week, Burgundy Diamond Mines (ASX: BDM) halted open pit operations at its Ekati mine in Canada’s Northwest Territories, triggering mass layoffs.

All three operating diamond mines in the region — Ekati, Diavik and Gahcho Kué — are now facing eventual closure, with Diavik scheduled to close in 2026 and Gahcho Kué expected to cease operations by 2030. Ekati’s long-term future remains uncertain.

Getting worse
Signs of a worsening crisis in the diamond sector were already clear in the first three months of 2025. De Beers, the world’s largest producer by value, saw a 44% drop in revenue in Q1 and is sitting on $2 billion in unsold inventory. It plans to cut over 1,000 jobs at its Debswana joint venture in Botswana.

Russia’s Alrosa, hampered by sanctions, reported a 77% plunge in profits and has halted production at key sites.

Petra Diamonds (LON: PDL) is fighting to survive after a 30% drop in sales and the sudden departure of its CEO.

Lucapa (ASX:LOM) entered voluntary administration in Australia, and Sierra Leone’s Koidu Limited shuttered operations and laid off more than 1,000 employees after losing $16 million to labour strikes.

Even Lucara (TSX: LUC), which operates in both Botswana and Canada, has flagged a “going concern” risk despite hitting production records.

All eyes are now on De Beers. Once synonymous with manufactured scarcity and aggressive branding, the company is up for sale. Parent company Anglo American (LON: AAL) has cut its valuation by $4.5 billion in just over a year. No buyers have emerged, but Botswana is reportedly pushing to take a controlling stake.

Source: mining.com

High-Value Recoveries Drive up Gem Revenue

Underlying EBITDA almost doubled to $29.7m and profit for the year increase from $1.6m to $8.1m.

Gem Diamonds saw revenue and profits increase in FY2024, as high-value recoveries more than made up for persistent downward pressure of the diamond market.

In its Full Year 2024 Results published today (13 March), the UK-based miner reported a 10 per cent increase in revenue to $154.2m, largely driven by the sale of 13 +100-cts diamonds from its Letseng mine, in Lesotho.

Underlying EBITDA almost doubled to $29.7m and profit for the year increase from $1.6m to $8.1m.

Exceptional sales included an 11 carat pink diamond that was sold for $45,537 per carat, a 63 carat Type IIa white diamond that was sold for $41,007 per carat (the highest per carat price of the year) and a 113 carat Type IIa white diamond that was sold for $39,345 per carat.

The number of carats recovered during the year fell 4 per cent to 105,012.

Clifford Elphick, CEO at Gem, said: “2024 was another challenging year for the diamond market with decreasing rough and polished diamond prices. Our relentless focus on factors within our control – cost containment, operational efficiencies and appropriate capital allocation, has yielded pleasing results.”

Looking to the future, the company expects the market to remain under pressure during the year, with signs of a modest recovery in diamond prices.

Source: IDEX

High Value Recoveries Boost Gem’s Revenue

*Gem Diamonds 212.91 carat rough diamond*

Gem Diamonds today (29 January) reported a dip in quarterly revenue but a year-on-year increase of 10 per cent, boosted by a flurry of high-value recoveries.

The UK-based miner sold $152.8m of rough in 2024, compared to $139.4m in 2023. Sales in Q4 last year were $32.2m, down almost 25 per cent on Q3.

Gem’s Letseng mine, in Lesotho, is the highest dollar per carat kimberlite diamond mine in the world.

During the year Gem sold 13 +100-cts diamonds recovered during the year, compared with just five the previous year.

The mine has averaged eight +100-cts since it started operations 17 years ago.

Six diamonds sold for more than $1m during Q4, the company said, contributing $11.6m. The highest price achieved in the quarter was $45,077 per carat for a 3.52-carat pink diamond.

Average price per carat during FY2024 was $1 ,334, a 4 per cent increase on the previous year. Th e number of carats recovered fell 4 per cent to 105,012.

Source: IDEX

Gem Diamonds’ Letšeng mine yields 212 carat stone

Africa focused miner Gem Diamonds has found yet another big precious stone at its prolific Letšeng mine in Lesotho, the third greater than 100 carat diamond mined in September.

The 212.91 carat Type II white diamond was recovered on September 19th, the company said on Monday. It is the thirteenth diamond over 100-carat unearthed this year at the operation, it noted.

Type IIa diamonds are the most valued and collectable precious gemstones, as they contain either very little or no nitrogen atoms in their crystal structure.

The Letšeng mine, owned 70% by Gem Diamonds, is one of the world’s ten largest diamond operations by revenue. At 3,100 metres (10,000 feet) above sea level, it is also one of the world’s most elevated diamond mines.

The operation has a track record of producing large, exceptional white diamonds, which makes it the highest-dollar-per-carat kimberlite diamond mine in the world.

Source: mining.com

Gem Diamonds finds 122 carat stone at Letšeng mine

Africa-focused miner Gem Diamonds has unearthed yet another massive white diamond at its prolific Letšeng mine in Lesotho, just days after another major find.

The 122.2 carat Type II white diamond was recovered over the weekend and is the eleventh greater than 100-carat precious stone mined this year at the operation, the company said.

Type IIa diamonds are the most valued and collectable precious gemstones, as they contain either very little or no nitrogen atoms in their crystal structure.

The operation has a track record of producing large, exceptional white diamonds, which makes it the highest-dollar-per-carat kimberlite diamond mine in the world.

Source: mining.com

Gem Diamonds Doubles its +100 carats Haul

129.71 carat Type II white rough diamond

Gem Diamonds has now recovered twice as many +100 cts diamond this year than during the whole of 2023.

The UK-based company today announced a 129.71 carat Type II white diamond from its Letseng mine, in Lesotho.

It’s the 10th +100 cts diamond of 2024. Historically the mine averages eight per year, but last year it recovered only five.

The spike in high-value recoveries has helped push up revenue at Gem. Earlier this month it reported a 9 per cent increase in its first half earnings to $77.9m.

Letseng 70 per cent owned by Gem and 30 per cent by the Lesotho government is the highest dollar per carat kimberlite diamond mine in the world.

Pic courtesy Gem Diamonds, shows the 129.71 ct stone.

Source: IDEX

Gem Diamonds unearths 123 carat rough diamond in Lesotho

Gem Diamonds lowers 2022 guidance despite solid Q3

Letšeng is the world’s highest dollar per carat diamond mine.

Gem Diamonds has announced the recovery of a 123.2 carat type 11 white diamond at its Letšeng mine in Lesotho.

This is the eighth greater than 100 diamond found at the operation in 2024, the company said.

Type IIa diamonds are the most valued and collectable precious gemstones, as they contain either very little or no nitrogen atoms in their crystal structure. Boart diamonds are stones of low quality that are used in powder form as an abrasive.

The prolific Letšeng mine is one of the world’s ten largest diamond operations by revenue. At 3,100 metres (10,000 feet) above sea level, it is also one of the world’s most elevated diamond mines.

The Letšeng mine is famous for the production of large, exceptional white quality diamonds, making it the highest dollar per carat kimberlite mine in the world, Gem said.

Source: mining.com

Gem Diamonds finds 172 carat stone at Letšeng

Africa focused miner Gem Diamonds has unearthed a 172.06 ct Type II white diamond at its prolific Letšeng mine in Lesotho, just days after another major find.

The diamond, recovered on June 2nd, is the seventh greater than 100 carat precious stone recovered this year at the operation, the company said.

Type IIa diamonds are the most valued and collectable precious gemstones, as they contain either very little or no nitrogen atoms in their crystal structure.

The Letšeng mine is one of the world’s ten largest diamond operations by revenue. At 3,100 metres (10,000 feet) above sea level, it is also one of the world’s most elevated diamond mines.

Diamond miners are going through a rough patch as US and Chinese demand for diamond jewellery continues to be weak and the popularity of cheaper laboratory grown diamonds continues to rise.

In 2015, man made diamonds had barely made an appearance as a competitor to natural diamonds. By last year, these stones accounted for more than 10% of the global diamond jewelry market, according to industry specialist Paul Zimnisky.

The market values of small to medium diamond mining companies, including Canada’s Lucara, South Africa’s Petra, and Gem Diamonds itself, are around $100 million or less. This is only about a third or a fourth of the price the large stones they aim to find may be worth.

Source: Mining.com

Gem Diamonds finds yet another big stone in Lesotho

*The 118.74 carats diamond recovered in late April.*

Africa-focused miner Gem Diamonds (LON: GEMD) has unearthed a new major Type II white diamond at its prolific Letšeng mine in Lesotho, barely six days after the previous find.

The 118.74-carat diamond is the fifth greater than 100-carat precious stone recovered this year at the operation, the company said.

Diamond miners are going through a rough patch as US and Chinese demand for diamond jewellery continues to be weak and the popularity of cheaper laboratory grown diamonds continues to rise.

In 2015, man-made diamonds had barely made an appearance as a competitor to natural diamonds. By last year, these stones accounted for more than 10% of the global diamond jewelry market, according to industry specialist Paul Zimnisky.

The market values of small to medium diamond mining companies, including Canada’s Lucara (TSX: LUC), South Africa’s Petra (LON: PDL), and Gem Diamonds itself, are around $100 million or less. This is only about a third or a fourth of the price the large stones they aim to find may be worth.

Source: mining.com

Revenue and Prices Down at Gem Diamonds

Gem Diamonds saw revenue and average per carat prices down by around a quarter during 2023 amid ongoing “downward pressure” in the rough market.

The UK-based miner operates Letseng, in Lesotho, the highest dollar per carat kimberlite diamond mine in the world.

It says total sales for the year were $139.4m, down 26 per cent, and the average per carat price was down 24 per cent to $1,334.

The highest price it achieved during the year was $33,745 per carat for a 117.09 carat white diamond which sold for $4m. It also sold six $1m-plus diamonds for a total of $13.8m.

Revenue for Q4 was $36.4m, up 14 per cent on Q3, according to its Q4 2023 Trading Update published on 1 February). Gem says it recovered 32,142 carats in Q4, up 16 per cent on Q3.

Recoveries of large diamonds in 2023 were similar to 2022, but below the mine’s average since 2008. The decrease in prices achieved in 2023 negatively impacted overall revenue achieved during the year.

Letseng is 70 per cent owned by Gem and 30 per cent by the Lesotho government.

Source: IDEX