REG - Gem Diamonds Limited - H1 2025 Trading Update

Gem DiamondsAnnouncement

23/07/2025 07:00

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RNS Number : 1357S  Gem Diamonds Limited  23 July 2025

23 July 2025
 

 

GEM DIAMONDS LIMITED

H1 2025 Trading Update

Gem Diamonds Limited (LSE: GEMD) ("Gem Diamonds" or the "Company" or the
"Group") provides the following trading update detailing the Group's
operational and sales performance from 1 January 2025 to 30 June 2025 ("H1
2025" or the "Period"). The Company also announces necessary operational
changes and cost management measures being implemented in response to
continued challenging market conditions and revises its 2025 guidance.

 

1.   H1 2025 Trading update

 

Highlights:

 ·         The highest price achieved in the Period was US$26 441 per carat for a 67.50
           carat white diamond.
 ·         Six diamonds sold for more than US$1.0 million each, generating aggregate
           revenue of US$9.3 million in the Period.
 ·         Four greater than 100 carat diamonds were recovered during the Period, of
           which three were sold.
 ·         Post period end, a 250 carat Type II white diamond was recovered, however the
           quality is such that it is expected to yield a relatively low polished
           outcome.
 ·         Following the Company's application to relinquish the Ghaghoo mining license,
           the license was officially cancelled, and the mine site was formally handed
           back to the Government of Botswana during the Period.

Details of the Group's operational and sales performance from 1 January 2025
to 30 June 2025 ("H1 2025" or the "Period") is detailed below.

 

                                       H1          H1           %

                                        2025        2024        Change
 Waste tonnes stripped                 1 698 817   3 163 476    -46%
 Ore tonnes treated                    2 504 001   2 542 114    -1%
 Satellite pipe contribution (tonnes)  802 135     1 110 647    -28%
 Carats recovered                      47 125      55 873       -16%
 Grade recovered (cpht)                1.88        2.20         -14%
 Carats sold                           44 360      56 944       -22%
 Total value (US$ millions)            44.7        77.9         -43%
 US$/carat                             1 008       1 366        -26%

 

2.   Operational and Cost Management Measures in Response to Market
Conditions

 

Considering the prolonged weakness in global diamond prices, compounded by a
weak US dollar and ongoing US tariff uncertainties, Gem Diamonds has
implemented decisive measures to conserve cash and protect shareholder value.
While the Company has met its production targets, it has not been immune to
the sustained pressure on rough diamond prices and adverse exchange rate
movements.

 

The Company has comprehensively reviewed its short term mine plan and cost
base to reduce costs by between US$1.4 million and US$1.6 million per month.
Key short-term cashflow optimisation measures implemented include:

 ·         Mining activities: The mine will continue to operate both plants at existing
           treatment volumes (c.5.0 million tonnes per annum). An additional 0.5 million
           tonnes of high value Satellite pipe material have been made accessible to mine
           and process during H2 2025. Waste mining volumes in both the Main and
           Satellite pits have been reduced to a minimum for an initial 12-month period
           without compromising the longer-term life of mine plan.
 ·         Workforce Rationalisation: The Company regrets that a reduction in workforce
           of approximately 250 employees (representing 20% of the current workforce) may
           be necessary to align with the scaled-back waste mining operations and other
           necessary operational changes. Engagement with employees and relevant
           stakeholders has commenced and is ongoing to ensure that the rationalisation
           process is managed responsibly and transparently.
 ·         Reduction in corporate costs: Further actions are being taken to reduce cash
           outflow at the  corporate office, including temporary salary reductions for
           Board, Executives and management personnel. The Company is considering
           awarding shares in lieu of salary to partially compensate the Executives and
           management personnel for the reduction in cash remuneration and to further
           align the interests of key management with shareholders.

 

Gem Diamonds remains committed to its long-term strategy of producing
exceptional quality diamonds and is confident that the measures being
implemented will position the Company for a strong recovery when market
conditions improve. The Company will continue to monitor market developments
closely and provide further updates as appropriate.

 

3.   Ghaghoo

 

Following the completion of agreed safety and remedial activities, including
the removal of the processing plant and civil infrastructure, the Ghaghoo mine
site was formally handed back to the Botswana Ministry of Minerals and Energy,
through the Department of Mines. As of 1 June 2025, the Department of Mines
has assumed full responsibility for the mine and the Company has no further
obligations or commitments related to the license or the mine.

 

4.   2025 Revised Guidance

 

In light of the above, the Company is revising its 2025 guidance.

 

                                                                FY 2025    FY 2025

                                                                Revised    Original

                                                                Guidance   Guidance
 Waste tonnes mined (Mt)                                        1.8 - 2.0  5.0 - 5.5
 Ore treated (Mt)                                               4.9 - 5.1  4.9 - 5.1
 Satellite pipe ore treated (Mt)                                1.2 - 1.4  0.8 - 1.0
 Carats recovered (Kct)                                         87 - 90    87 - 90
 Carats sold (Kct)                                              84 - 87    86 - 89
 Direct cash costs (before waste) per tonne treated (Maloti)    225 - 240  245 - 260
 Operating costs per tonne treated(1) (Maloti)                  295 - 310  345 - 360
 Mining waste cash costs per tonne of waste mined (Maloti)      60 - 70    60 - 70
 Total capex (US$ million)                                      4.0 - 5.0  4.0 - 6.0

(1) Operating costs per tonne treated excludes royalty, selling costs,
depreciation and mine amortisation, but includes inventory, waste and ore
stockpile adjustments.

 

 

FOR FURTHER INFORMATION:

 

Gem Diamonds Limited

Kiki Constantopoulos, Company Secretary

ir@gemdiamonds.com (mailto:ir@gemdiamonds.com)

 

Celicourt Communications

Mark Antelme / Felicity
Winkles

Tel: +44 (0) 20 777 6424

This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014.

The Gem Diamonds Limited LEI number is 213800RC2PGGMZQG8L67.

ABOUT GEM DIAMONDS:

Gem Diamonds is a leading global producer of high value diamonds. The Company
owns 70% of the Letšeng mine in Lesotho. The Letšeng mine is famous for the
production of large, exceptional white diamonds, making it the highest dollar
per carat kimberlite diamond mine in the world.

www.gemdiamonds.com (http://www.gemdiamonds.com)

 

 

 

 

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