Q3 2026 Trading Update
Q3 2026 carats recovered and sold below prior year, but prices up 73% driven by two exceptional large diamonds.
vs expectations: ahead
- Carats recovered Q3 2026 19 299 (prior 22 268 (Q3 2025))
- Revenue Q3 2026 US$34.8 million (prior US$25.7 million (Q3 2025))
- Average price per carat Q3 2026 US$1 945 (prior US$1 124 (Q3 2025))
- Carats sold Q3 2026 17 899 (prior 22 830 (Q3 2025))
- Greater than 100 carat diamonds recovered YTD 2026 six
- FY2026 carats recovered guidance 78 – 80 Kct (revised from 75 – 78 Kct)
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Gem Diamonds Limited (LSE: GEMD) (“Gem Diamonds” or the “Company” or the “Group”) provides the following trading update detailing the Group's operational and sales performance from 1 July 2026 to 30 September 2026 ("Q3 2026" or the "Period").
Highlights:
Carats recovered during the Period were 19 299 (Q3 2025: 22 268).
Three greater than 100 carat diamonds were recovered during the Period bringing the total year to date recoveries of greater than 100 carat diamonds to six.
Two greater than 100 carat diamonds were sold during the Period, including the 347 carat Lesotho Jubilee white Type II diamond recovered in Q2 2026, which contributed to the higher US$ per carat achieved in the Period.
17 899 carats were sold during the Period (Q3 2025: 22 830 carats), generating revenue of US$34.8 million (Q3 2025: US$25.7 million) and achieving an average price of US$1 945 per carat (Q3 2025: US$1 124 per carat).
Four diamonds sold for more than US$1.0 million each, contributing US$22.2 million to revenue for the Period.
Letšeng Diamonds production summary:
In line with the mine plan, production during the Period was sourced from the Main Pipe with only 7 143 tonnes of the remaining ore from the current Satellite Pit cutback processed. Preparations continue for the next cutback in the Satellite Pipe. The table below sets out the production and sales performance for the Period:
| H1 2026 | Q3 2026 | YTD 2026 | Q3 2025 | YTD 2025 | |
| Waste tonnes stripped | 308 118 | 129 465 | 437 583 | 204 595 | 1 903 412 |
| Ore tonnes treated | 2 604 145 | 1 363 150 | 3 967 295 | 1 318 624 | 3 862 625 |
| Satellite pipe contribution (tonnes) | 417 734 | 7 143 | 424 877 | 208 558 | 1 010 693 |
| Carats recovered | 41 695 | 19 299 | 60 994 | 22 268 | 69 393 |
| Grade recovered (cpht) | 1.60 | 1.42 | 1.54 | 1.69 | 1.80 |
| Carats sold | 42 624 | 17 899 | 60 524 | 22 830 | 67 190 |
| Total value (US$ millions) | 59.5 | 34.8 | 94.3 | 25.7 | 70.4 |
| US$/carat | 1 395 | 1 945 | 1 558 | 1 124 | 1 047 |
Letšeng Diamonds royalty rate:
As reported in the Half-Year Report 2026, Letšeng Diamonds was granted a royalty remission up to the end of September 2026. Post the Period, the Government of Lesotho approved a variable royalty rate of between 3% and 6%, to be determined on the six-monthly average dollar per carat. This is effective for sales post 1 October 2026.
Group facility renewal update:
The Group’s revolving credit facilities expire on 21 December 2026. The renewal of the facilities is progressing, and commercial terms and conditions are currently being finalised with Nedbank Limited and Standard Bank.
Gem Diamonds' CEO, Clifford Elphick, commented:
"Sales of Letšeng’s rough diamonds in September achieved good prices, with results further supported by the sale of the exceptional 347 carat Lesotho Jubilee. These results are encouraging indicators that demand and prices for Letšeng quality diamonds are firm.
The agreement by the Lesotho Government to introduce a variable royalty rate of between 3% and 6% is a good policy decision ensuring the long-term sustainability of the mine. We value the continued support of our funders, Nedbank and Standard Bank, as we progress the refinancing of our debt facilities.”
2026 Revised guidance
Following strong operational performance and cost containment the Group is positively revising its FY2026 guidance set out in the table below.
| 2026 Original Guidance | 2026 Revised Guidance | |
| Waste tonnes mined (Mt) | 0.4 – 0.6 | 0.57 – 0.62 |
| Ore treated (Mt) | 5.0 – 5.2 | 5.1 – 5.2 |
| Satellite pipe ore treated (Mt) | 0.3 – 0.4 | 424 877 tonnes (actual) |
| Carats recovered (Kct) | 75 – 78 | 78 – 80 |
| Carats sold (Kct) | 77 – 80 | 79 – 81 |
| Direct cash costs (before waste) per tonne treated (Maloti) | 220 – 235 | 205 – 215 |
| Operating costs per tonne treated 1 (Maloti) | 310 – 325 | 305 – 315 |
| Mining waste cash costs per tonne of waste mined (Maloti) | 75 – 80 | 73 – 78 |
| Total capex (US$ million) | 1.0 – 1.5 | 0.34 – 0.45 |
1 Operating costs per tonne treated excludes royalty, selling costs, depreciation and mine amortisation, but includes inventory, waste and ore stockpile adjustments.
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.