Gem Diamonds Stock Earnings Reports

Key points for investors:

- H1 2025 operational performance: ~47,000 carats recovered, average realized price c.$1,000/ct (reported $1,008/ct), revenue $45.5m. Dollar-per-carat is a historical low for Gem and drove a negative EBITDA of $2.6m and an attributable loss per share of $0.084.

- Costs, cash and liquidity: Group cash at period end ~$6.8m with net debt of ~$28m and undrawn facilities of ~ $55–56m. Management has implemented aggressive cost and capital controls, including in‑sourcing, corporate salary reductions and workforce reductions (240 roles) to conserve cash.

- Mine plan and operational changes: Throughput maintained at ~5.0 Mtpa while waste mining has been cut materially to preserve cash (waste down to 1.7 Mt in H1). The mine plan has been revised to reduce upfront waste stripping (c.35 Mt less waste in the plan), which improves near‑term cash flow but shortens life of mine by ~4 years; the plan is deliberately flexible to re-expand if prices recover.

- Balance sheet and non‑recurring items: Goodwill fully impaired (~$10.7m). Ghaghoo licence returned to Botswana, with reversal of environmental provision and a net gain on discontinuation. Inventory impairment of ~$1.8m taken on lower‑grade stockpile.

- Sustainability and safety: Record low all‑injury frequency rate (0.51 for H1; YTD 0.44), and carbon reduction tracking well toward 30% by 2030 (27% achieved vs 2021 baseline).

- Market risks and outlook: Material market uncertainty driven by US tariffs on India, geopolitical tensions and pressure at the lower end of the diamond market (competition from synthetics). Management saw brief price green shoots in June/July but cautions that recent tariff news has created renewed uncertainty. Management remains optimistic about a recovery and has positioned the business to withstand the downturn, targeting cash generation and cost discipline. Guidance for the year (published 23 July) was reiterated, incorporating the revised mine plan and expected savings (c.$1.5m/month from Oct).