Gem Diamonds Limited (LSE:GEMD) said its fourth-quarter 2025 performance met or exceeded revised operational targets, even as full-year production volumes declined. During the quarter, the company recovered 90,354 carats at an average price of US$1,288 per carat, helping to support cash preservation efforts amid a challenging operating environment.
Management said disciplined cost controls played a key role in the quarter, with measures such as deferred waste stripping keeping both direct and operating costs toward the lower end of guidance. However, this approach led to higher waste unit costs. Sales of several notable high-value diamonds during the period, along with the recovery of a 193-carat stone shortly after quarter end, highlighted the continued premium nature of production from the Letšeng mine and its ability to underpin revenue resilience.
From a broader perspective, Gem Diamonds’ outlook is increasingly supported by improving financial performance, with profitability turning positive and free cash flow showing a strong recovery alongside a stable leverage position. These positives are tempered by weaker technical signals, as the share price remains below major moving averages and the MACD indicator is negative. In addition, management commentary has pointed to near-term operational pressures, including negative EBITDA, a year-on-year revenue decline and impairment charges, despite ongoing cost initiatives and available liquidity.
More about Gem Diamonds Limited
Gem Diamonds Limited is a UK-listed diamond mining company focused on the production of high-value rough diamonds from its majority-owned Letšeng mine in Lesotho. The operation is known for yielding large, high-quality white diamonds that consistently achieve premium prices on a per-carat basis.
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