Gem Diamonds (LSE:GEMD) reported a sharp decline in financial performance for 2025, with full-year revenue dropping 36% year over year to $98.4 million as the company navigated a prolonged downturn in rough diamond prices and weaker global demand.
The UK-listed diamond producer recorded a net loss of $63.4 million for the year, equivalent to a loss per share of $0.68. Pretax results showed a loss of $81 million, while adjusted EBITDA totalled $3.9 million.
According to the company, the revenue decline reflected continued weakness in rough diamond prices, elevated inventory levels across the market and subdued demand conditions. Broader macroeconomic pressures and geopolitical uncertainty also weighed on the sector.
Operational factors also contributed to the weaker results. Production included a greater proportion of lower-grade Main Pipe ore, leading to fewer high-quality diamonds being recovered and a smaller number of large stones sold during the year.
Gem Diamonds also recognised a $77.5 million impairment charge at its Letšeng mine in Lesotho, which significantly contributed to the overall net loss reported for the period.
In response to the challenging environment, the company introduced a Business Resilience Programme in the second half of 2025 aimed at lowering operating costs and preserving cash. Savings from these initiatives, together with royalty relief measures, helped offset part of the impact from lower revenue.
Looking ahead, management expects the diamond market to remain weak through 2026. The company also plans to refinance its group credit facilities ahead of their expiry in December 2026.
Gem Diamonds said the operational and financial measures implemented during 2025 are intended to strengthen the business and position it to benefit once market conditions improve.
Leave a Reply