Gem Diamonds shines despite tough market for precious stones
By Abigail Townsend
Date: Thursday 13 Mar 2025
(Sharecast News) - Gem Diamonds posted improved numbers on Thursday, despite a "challenging" year for the wider market.
The London-listed diamond producer said revenues in the year to 31 December rose 10% at $154.2m, while underlying earnings before interest, tax, depreciation and amortisation came in at $29.7m. That compares to $15.2m a year previously.
Earnings per share were 2.1 cents, compared to a loss per share of 1.5 cents a year earlier.
Gem said it had benefited from the sale of 13 diamonds greater than 100 carats during the year, as well as cost-cutting programmes.
The number of carats recovered was 105,012 - down on 2023's 109,656 though ahead of guidance - but the average value rose to $1,390 per carat from $1,334.
Clifford Elphick, chief executive, said: "2024 was another challenging year for the diamond market, with decreasing rough and polished diamond prices. Our relentless focus on factors within our control - cost containment, operational efficiencies and appropriate capital allocation - has yielded pleasing results."
Looking to the current year, Elphick said the focus would be on implementation of an updated plan for the Letseng mine in Lesotho, including a further reduction in waste volumes. Gem owns 70% of the mine, which is known for producing large, high quality white diamonds.
He continued: "The next four years will be challenging, with limited access to higher-value satellite ore. We will continue to look for opportunities to further optimise our mine plan, to ensure the profitability of our operations.
"2025 has begun with modest improvements in prices. We are optimistic this will continue throughout the year."
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