London-listed Gem Diamonds’ focus on cost containment, operational efficiencies and appropriate capital allocation yielded pleasing results for the financial year ended December 31, 2024, despite a challenging period for the diamond market with decreasing rough and polished diamond prices, CEO Clifford Elphick says.

The global economic landscape in 2024 was marked by uncertainty, with persistent inflation, higher interest rates for longer periods than expected and geopolitical tensions weighing on growth. As a result, the downward pressure on the diamond market persisted.

Despite these challenges, the group achieved a 10% increase in revenue, mainly driven by the sale of 13 diamonds weighing more than 100 ct each.

The increase in revenue to $154.2-million, together with the implementation of numerous cost reduction initiatives resulted in a 95% increase in underlying earnings before interest, taxes, depreciation and amortisation to $29.7-million, compared with 2023.

Profit for the period was $8.1-million and earnings a share $0.02. 

Net debt at period end was $7.3-million.

The benefits of the structural changes implemented in 2023 and 2024 are evident in the Lesotho-based Letšeng mine’s operational performance during the year.

The targeted initiative to control the ore feed rate into the treatment plants resulted in a significant improvement in plant stability and an increase in overall plant use to 80% in 2024, up from 78% in 2023 and 75% in 2022.

The group recovered 105 012 ct of diamonds in the year under review.

An average value of $1 390/ct was achieved.

The highest dollar per carat achieved for a white rough diamond during the year was $41 007/ct.

The group maintained its credible safety performance in 2024, achieving its lowest all injury frequency rate on record of 0.61, zero fatalities, and three lost-time injuries with a lost time injury frequency rate of 0.18.

Elphick says the focus now is on the safe implementation of Letšeng’s updated mine plan, which is expected to significantly reduce waste volumes.

“The next four years will be challenging, with limited access to higher-value satellite ore. We will continue to look for opportunities to further optimise our mine plan to ensure the profitability of our operations,” he points out.

Elphick says this year started with modest improvements in prices of both rough and polished diamonds, and the company is optimistic that this will continue throughout the year.