Gem Diamonds Limited (LSE:GEMD) reported third-quarter 2026 diamond sales revenue of US$34.8 million, up 35% from US$25.7 million a year earlier, despite a decline in the volume of diamonds sold.
The company achieved an average selling price of US$1,945 per carat, compared with US$1,124 in the corresponding period of 2025, supported by the sale of larger diamonds from its Letšeng mine in Lesotho.
Diamond Production and Sales Performance
Gem Diamonds recovered 19,299 carats during the quarter, down from 22,268 carats a year earlier, while ore processed increased to 1.36 million tonnes from 1.32 million tonnes.
The recovered grade declined to 1.42 carats per hundred tonnes from 1.69 carats.
Sales volumes decreased to 17,899 carats from 22,830 carats, although the average realised price increased by approximately 73%.
Four diamonds sold for more than US$1 million each, generating combined revenue of US$22.2 million. These included the 347-carat Lesotho Jubilee white Type II diamond recovered during the second quarter.
Three diamonds weighing more than 100 carats were recovered during the quarter, bringing the year-to-date total to six.
For the first nine months of 2026, sales revenue reached US$94.3 million, compared with US$70.4 million in the corresponding period last year.
Revised Production and Cost Guidance
Following third-quarter operations, Gem Diamonds increased its full-year diamond recovery guidance to 78,000–80,000 carats, from the previous range of 75,000–78,000 carats.
Expected sales volumes were also raised to 79,000–81,000 carats, compared with the earlier forecast of 77,000–80,000 carats.
The company reduced its direct cash cost guidance to 205–215 maloti per tonne treated, from 220–235 maloti previously.
Operating cost guidance was lowered to 305–315 maloti per tonne, while expected capital expenditure decreased to US$0.34 million–US$0.45 million from US$1.0 million–US$1.5 million.
Lesotho Royalty Agreement and Debt Refinancing
Following the expiry of a royalty remission at the end of September, the Government of Lesotho approved a variable royalty rate of between 3% and 6% for Letšeng Diamonds.
The new rate applies to sales from 1 October 2026 and will be determined using the six-month average diamond selling price per carat.
Separately, Gem Diamonds confirmed that negotiations to renew its revolving credit facilities with Nedbank Limited and Standard Bank are progressing.
The existing facilities expire on 21 December 2026, with commercial terms and conditions currently being finalised.
Mining Operations and Outlook
Production during the third quarter was predominantly sourced from the Main Pipe at Letšeng, with 7,143 tonnes processed from the remaining ore in the current Satellite Pit cutback.
Preparations are continuing for the next Satellite Pipe cutback.
Gem Diamonds expects full-year ore processing of 5.1 million–5.2 million tonnes, compared with its previous guidance of 5.0 million–5.2 million tonnes.
More About Gem Diamonds
Gem Diamonds Limited is a diamond mining company operating the Letšeng mine in Lesotho. The mine produces rough diamonds, including large, high-value stones sold into international diamond markets.
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