UK's Gem Diamonds 2025 results hit by weak market, impairment cost

Gem Diamonds

18/03/2026 07:11

Corrects FY EPS, net income and pretax profit numbers in Key Details table

Overview

UK diamond producer's 2025 revenue fell 36% yr/yr amid weak market conditions

Company reported a full-year net loss, impacted by US$77.5 mln Letšeng impairment

Business Resilience Programme launched in H2 2025 to reduce costs and conserve cash

Outlook

Company expects continued weakness in the diamond market in 2026

Gem Diamonds aims to renew group credit facilities before expiry in December 2026

Company says actions taken in 2025 have positioned it for recovery when market conditions improve

Result Drivers

DIAMOND MARKET PRESSURE - Co said revenue fell due to prolonged weakness in rough diamond prices, elevated inventory levels, and weak demand, compounded by macroeconomic and geopolitical factors

LOWER ORE QUALITY AND FEWER LARGE DIAMONDS - Revenue decline driven by fewer and lower quality diamonds, due to higher proportion of lower-grade Main Pipe ore and fewer large stones sold

COST REDUCTIONS - Cost efficiencies from the Business Resilience Programme and royalty relief partially offset revenue decline

Company press release: ID:nRSR0146Xa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
$98.4 mln
FY EPS
-$0.061
FY Net Income
-$9.2 mln
FY Adjusted EBITDA
$3.90 mln
FY Pretax Profit
-$11.1 mln


Analyst Coverage

The one available analyst rating on the shares is "strong buy"

The average consensus recommendation for the non-gold precious metals & minerals peer group is "buy."

Wall Street's median 12-month price target for Gem Diamonds Ltd is GBp13.00, about 182.6% above its March 17 closing price of GBp4.60

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

 (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)