Gem Diamonds Limited (LSE:GEMD) said its Letšeng mine in Lesotho generated revenue of US$32.1 million during the first quarter of 2026, with its primary production export of 16,727 carats achieving an average selling price of US$1,501 per carat.
Production during the period was weighted toward ore from the lower-grade Main Pipe, while output from satellite ore sources declined. The number of carats sold was also lower due to certain parcels being carried forward for sale in the second quarter.
High-value diamond recoveries support pricing
The company highlighted continued strength in pricing for premium stones, including the sale of a 52.24-carat white diamond that achieved US$32,908 per carat. Four diamonds sold for more than US$1 million each during the quarter.
Gem Diamonds also recovered two diamonds exceeding 100 carats, with one of the stones scheduled for sale in the following quarter.
Management stated that all key operational and financial indicators, including carat sales volumes, remain within the company’s guidance range for 2026, reflecting steady operations and ongoing demand for Letšeng’s high-value diamond production despite normal fluctuations in ore mix and quarterly volumes.
Outlook and market considerations
Gem Diamonds’ outlook continues to be weighed down by weaker financial performance, including substantial margin compression, a significant net loss and negative free cash flow recorded during 2025.
Technical indicators remain broadly neutral, offering limited evidence of a sustained upward market trend, while valuation support is constrained by the company’s negative price-to-earnings ratio and the absence of dividend yield data.
More about Gem Diamonds
Gem Diamonds Limited is a global producer of high-value rough diamonds and holds a 70% interest in the Letšeng mine in Lesotho. Letšeng is recognised for producing large, high-quality white diamonds and is widely regarded as the world’s highest dollar-per-carat kimberlite diamond mine, positioning the company within the premium segment of the global diamond market.
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