H1 2026 Trading Update
Gem Diamonds Limited reported a strong first half of 2026, with total sales revenue reaching US$59.5 million, a 33% increase compared to the same period in 2025, driven by a 38% rise in the average price per carat to US$1,395. The company recovered three diamonds over 100 carats, including the 346.99 carat 'Lesotho Jubilee', and sold eight diamonds for over US$1.0 million each, generating US$16.1 million. Despite a 12% decrease in carats recovered due to a shift in mining focus from the higher-grade Satellite Pipe to the lower-grade Main Pipe, all operational and financial metrics are trending within guidance for 2026, with the company noting resilience in demand for its high-quality diamonds despite market pressures from synthetics.
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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 2026 to 30 June 2026 ("H1 2026" or the "Period").
Highlights:
| · | Three +100 carat diamonds were recovered in the Period of which two were sold. A 346.99 carat white diamond was recovered in June and has been named the 'Lesotho Jubilee' to commemorate the 60 th anniversary of Lesotho's independence that will be celebrated on 4 October this year. The diamond will be sold after Period end. |
| · | The highest price achieved in the Period was US$32 908 per carat for a 52.24 carat white diamond. |
| · | Eight diamonds sold for more than US$1.0 million each, generating aggregate revenue of US$16.1 million during the Period. |
| · | All operational and financial metrics are trending within issued guidance for 2026. |
Letšeng Diamonds production summary:
During the Period, production was primarily sourced from the lower-grade, lower-value Main Pipe, with a lower contribution from the higher-grade, higher-value Satellite Pipe, in accordance with the mine plan. The lower proportion of Satellite Pipe material in the production mix resulted in the overall lower grade, and therefore lower carats recovered during the Period when compared to H1 2025. Production for the remainder of the year will be sourced only from the Main Pipe, while preparations are made for the next cutback in the Satellite Pipe. The table below sets out the production and sales performance for the Period:
| H1 2026 | H1 2025 | % Change | |
|---|---|---|---|
| Waste tonnes stripped | 308 118 | 1 698 817 | (82%) |
| Ore tonnes treated | 2 604 145 | 2 504 001 | 4% |
| Satellite Pipe contribution (tonnes) | 417 734 | 802 135 | (48%) |
| Carats recovered | 41 695 | 47 125 | (12%) |
| Grade recovered (cpht) | 1.60 | 1.88 | (15%) |
| Carats sold | 42 624 | 44 360 | (4%) |
| Total value (US$ millions) | 59.5 | 44.7 | 33% |
| US$/carat | 1 395 | 1 008 | 38% |
Gem Diamonds' CEO, Clifford Elphick, commented:
"Market prices for lower quality, small, rough diamonds remain severely impacted by synthetic diamonds. This has resulted in a number of mines, with this particular size and quality diamond footprint, suspending operations.
Letšeng, with its exceptional quality and large diamond recoveries, however, has been less impacted, with encouragingly strong demand leading to an improvement in prices during H1 2026.
Gem remains focused on continuing to operate the Letšeng mine safely and responsibly, maintain financial discipline, and preserve the long-term value of the business."
The Gem Diamonds Limited LEI number is 213800RC2PGGMZQG8L67.
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.