Gem Diamonds (GEMD) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was $45.5 million, down from $78 million year-over-year, driven by lower carats sold and a significant drop in average price per carat to $1,008 from $1,366.

• EBITDA was negative $2.6 million, with a net attributable loss of $11.7 million after a $10.7 million goodwill impairment, and a loss per share of up to 9.5 US cents.

• Aggressive cost-saving measures included a workforce reduction of up to 20%, executive salary cuts, and reduced waste mining, saving $1.5–$1.7 million per month.

• Operational throughput was maintained at around 5 million tons per annum, with 47,125 carats recovered, slightly below prior periods due to ore mix.

• Diamond market remains under significant pressure due to global economic uncertainty, subdued demand, and competition from synthetics.

Financial highlights

• Revenue declined 42% year-over-year to $45.4 million, with cost of sales down 15% and net loss before tax of $20 million.

• Impairments included a $1.8 million inventory provision and a $10.7 million goodwill write-off.

• Net debt increased to $28.2 million, with $55.8 million in undrawn facilities and cash at period end of $6.8–$7 million.

• Market capitalisation as of 3 September 2025 was £10 million (US $14 million).

• Gross margin was negative due to lower prices and volumes.

Outlook and guidance

• Guidance incorporates revised mine plan, $1.5–$1.7 million monthly cost savings, and flexibility to adapt as market conditions change.

• Revised 2025 guidance: waste stripped 1.8–2.0 Mt, ore treated 4.9–5.1 Mt, carats recovered 87–90 Kct, carats sold 84–87 Kct.

• Direct cash costs per tonne treated lowered to LSL 225–240; operating costs per tonne treated reduced to LSL 295–310.

• Management expects to maintain ore throughput and is positioned for recovery if diamond prices improve.