Gem Diamonds (GEMD) H2 2025 earnings summary

Executive summary

• 2025 saw 90,354 carats recovered, slightly below normal due to ore mix, with $1,105 per carat achieved, reflecting ongoing diamond price pressures and lower satellite pipe contribution.

• Revenue declined to $98.4 million, with a negative EBITDA in H1 turning to a positive $3.9 million for the year after aggressive cost and operational changes.

• Net debt reduced by $8.1 million to $20.1 million, aided by strong cash generation and a Business Resilience Programme focused on cost control, workforce rationalization, and CapEx deferral.

• Safety performance was strong, with zero fatalities, record low injury frequency rates (AIFR 0.41), and a 30% reduction in Scope 1 & 2 carbon emissions; decarbonization targets were met ahead of schedule.

Financial highlights

• Revenue dropped to $98.4 million, $55.5 million lower year-over-year, mainly due to lower carat volumes and reduced satellite pipe contribution.

• Average price per carat fell to $1,105 from $1,390 year-over-year.

• Underlying EBITDA was $3.9 million, a $6+ million turnaround in H2 from a $2.6 million loss at half-year.

• Net attributable loss (pre-exceptional) was $8.6 million, or $6.1 loss per share; net loss after tax was $72.6 million, including $81 million in exceptional items.

• Exceptional items included a $77 million asset impairment and $3.5 million inventory write-down, leading to a total attributable loss of $95.4 million; net loss for the year was $104 million, or $0.74 per share.

Outlook and guidance

• Price increases for high-quality diamonds began in Q4 2025 and continued into Q1 2026, providing cautious optimism for recovery.

• 2026 guidance: 75–78k carats recovered, 5.0–5.2 Mt ore treated, direct cash costs per tonne treated LSL 220–235; satellite pipe ore to contribute 0.3–0.4 Mt in H1 2026.

• Guidance for 2026 will be reviewed and updated during the year.

• Total capital expenditure expected at $1.0–1.5 million.