https://newsletter.en.creamermedia.com
Diamonds|Financial|Projects
Diamonds|Financial|Projects
diamonds|financial|projects

Low prices contribute to 65% y/y drop in Gem's Ebitda

14th March 2024

By: Creamer Media Reporter

     

Font size: - +

High inflation, interest rate hikes and slow overall economic growth in major economies impacted negatively on the diamond market in 2023, putting pressure on rough and polished diamond prices.

These factors contributed to London-listed Gem Diamonds reporting a 26% year-on-year decrease in revenue to $140.3-million for the 2023 financial year, as well as a 65% year-on-year decrease in earnings before interest, taxes, depreciation and amortisation to $15.2-million.

Gem posted an attributable loss of $2.1-million, compared with a profit of $10.2-million in 2022.

"2023 was a challenging year globally with surging inflation and interest rate increases in major economies, two international conflicts and a subdued overall global economic outlook which had a significant negative impact on the diamond industry. Our financial results suffered primarily as a result of a decrease in revenue because of lower diamond prices.

"We have relentlessly focused on cost control measures, enhanced operational efficiencies, rigorous evaluation of capital projects and the deferment of non-essential longer-term projects," comments CEO Clifford Elphick.

He adds that the pressure on the diamond market has persisted into this year, but says there have been some signs of price recovery.

"We are cautiously optimistic that prices will stabilise and that there will be some growth towards the end of 2024," he says. 

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Tractor & Grader Supplies

Tractor & Grader Supplies (TGS™): Your Trusted, Genuine Source for New Replacement Parts for Earthmoving, Construction and Mining Machinery

VISIT SHOWROOM 
The Southern African Institute of Mining and Metallurgy
The Southern African Institute of Mining and Metallurgy

The SAIMM started as a learned society in 1894 after the invention of the cyanide process that saved the South African gold mining industry of the...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (13/06/2025)
13th June 2025 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.293 0.384s - 248pq - 2rq
Subscribe Now