Overview
Gem Diamonds, the UK-based diamond producer, said full-year revenue for 2025 dropped 36% year-on-year to $98.4 million as persistent weakness in rough diamond prices and subdued demand weighed on results. The company posted a full-year net loss of $63.40 million, translating to a loss per share of $0.68.
Profitability and cash-flow metrics
Pretax results reflected a loss of $81 million for the year. On a nearer-term operating basis, adjusted EBITDA was reported at $3.90 million. Management attributed the revenue shortfall to a combination of factors that included weak prices for rough stones, elevated inventory levels and softer demand, with macroeconomic and geopolitical conditions cited as exacerbating influences.
Operational drivers
The company said the downturn was amplified by both a lower number of stones recovered and a deterioration in average stone quality. Gem Diamonds reported a higher proportion of lower-grade Main Pipe ore and fewer large stones sold, which together reduced realised prices and overall sales volumes.
Impairment and cost actions
A $77.5 million impairment at the Letšeng operation was recorded during the year and was a material contributor to the net loss. In response to the challenging environment, the company initiated a Business Resilience Programme in the second half of 2025 aimed at cutting costs and conserving cash. According to the company, cost efficiencies from this programme and royalty relief provided some offset to the revenue decline.
Outlook and liquidity
Gem Diamonds signalled expectations that weakness in the diamond market will persist into 2026. The company said it intends to seek renewal of its group credit facilities before their expiry in December 2026. Management also stated that the measures implemented during 2025 have positioned the group to recover when market conditions improve.
Key takeaways
- Revenue fell 36% year-on-year to $98.4 million for 2025.
- Net loss for the year was $63.40 million, or $0.68 per share, with a pretax loss of $81 million and adjusted EBITDA of $3.90 million.
- A $77.5 million impairment at Letšeng and a higher mix of lower-grade Main Pipe ore reduced realised results; a Business Resilience Programme was launched in H2 2025 to cut costs and conserve cash.
Sectors affected
- Mining and natural resources - direct impact from production mix and ore quality.
- Luxury goods and commodities markets - demand and pricing dynamics for diamonds.
- Corporate finance - liquidity and credit facility renewal considerations for the group.