Gem Diamonds (GEMD) H1 2026 earnings summary

Executive summary

• Revenue increased 32% year-over-year to $59.7 million, with EBITDA improving to $8.6 million from a negative $2.6 million and net profit reaching $0.6 million, reversing prior losses.

• Net debt reduced to $0.5 million from $20.1 million at year-end, and cash balance increased to $23.2 million.

• Three diamonds over 100 carats, including the 347ct "Lesotho Jubilee," were recovered, with two more found post-period.

• Cost base right-sized through the Business Resilience Programme, delivering efficiencies and improved margins.

• Average price per carat rose to $1,395 from $1,008, driven by quality and market demand.

Financial highlights

• Revenue: $59.7 million (H1 2025: $45.4 million), average price $1,395/ct (H1 2025: $1,008/ct), despite a 4% decline in carats sold.

• EBITDA improved to $8.6 million from a negative $2.6 million; attributable profit reached $0.6 million (H1 2025: -$11.7 million).

• Net debt reduced to $0.5 million; cash increased to $20.2 million.

• Corporate costs reduced by 19% to $2.5 million.

• Basic earnings per share were 0.5 US cents.

Outlook and guidance

• Confident in maintaining ore production at 5 million tons per annum; 2026 guidance: 75–78k carats recovered, 77–80k carats sold, ore treated 5.0–5.2Mt.

• Cost guidance for the full year maintained, with direct cash costs per tonne treated expected at LSL 220–235.

• Board intends to resume dividends when profits are sustained.

• Positive market trends expected to continue, with further sales and price improvements anticipated.

• Ongoing discussions with lenders to refinance revolving credit facilities before December 2026 expiry.