**Summary**
Gem Diamonds Limiteds 2025 financial results reflect a challenging year for the diamond industry, marked by geopolitical tensions, US tariffs, and competition from synthetic diamonds. The company reported a significant decline in revenue to US$98.4 million, a 36% drop from 2024, primarily due to lower diamond prices, reduced volumes of high-value diamonds, and a shift in ore mix towards lower-grade material. Underlying EBITDA fell to US$3.9 million, an 87% decrease, while the company recorded a loss of US$104.0 million after exceptional items, driven by a US$77.5 million impairment of its Letลกeng mines carrying value.
Operationally, Letลกengs carats recovered decreased by 14% to 90,354 carats, with waste tonnes mined reduced by 64% to 2.0 million tonnes as part of cost-saving measures. The average diamond value achieved was US$1,105 per carat, down from US$1,390 in 2024. The company maintained excellent safety performance, achieving a record-low AIFR of 0.41.
In response to market challenges, Gem Diamonds launched the Business Resilience Programme in 2025, focusing on cost reduction and operational efficiency. This included workforce rationalization, salary sacrifices, and minimizing waste mining activities. The program delivered immediate results, with recurring monthly savings of approximately US$1.5 million.
The companys net debt position improved to US$20.1 million by year-end, down from US$28.2 million in June 2025, due to cost savings and a modest recovery in diamond prices in Q4. However, the renewal of revolving credit facilities expiring in December 2026 remains a key assumption in the going concern assessment, creating a material uncertainty.
Looking ahead, Gem Diamonds aims to navigate the difficult market conditions by focusing on safe and efficient operations at Letลกeng, exploring opportunities for earlier extraction of higher-value ore, and engaging with lenders to renew credit facilities. The company remains confident in its long-term strategy of producing exceptional quality diamonds and believes it is well-positioned for recovery when market conditions improve.
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Revenue (US$ million) | 98.4 | 154.2 | -36% |
| Underlying EBITDA (US$ million) | 3.9 | 29.7 | -87% |
| Loss for the year before exceptional items (US$ million) | -9.1 | 8.1 | N/A |
| Attributable loss after exceptional items (US$ million) | -104.0 | -2.9 | N/A |
| Net debt (US$ million) | 20.1 | 7.3 | +175% |
| Carats recovered (thousands) | 90.4 | 105.0 | -14% |
| Waste tonnes mined (millions) | 2.0 | 5.4 | -64% |
| Average value per carat (US$) | 1,105 | 1,390 | -21% |