Gem Diamonds (LSE:GEMD) has reported third-quarter revenue of $34.8 million for the three months to 30 September, up from $25.7 million a year earlier, as a sharply higher average price per carat offset a decline in volumes sold.
The London-listed diamond miner, which operates the Letšeng mine in Lesotho, achieved an average price of $1,945 per carat in the period, against $1,124 per carat in the third quarter of 2025, even as carats sold fell to 17,899 from 22,830.
Carats recovered also declined, to 19,299 from 22,268 a year earlier, with production sourced mainly from the Main Pipe in line with the mine plan, while only 7,143 tonnes of remaining ore from the current Satellite Pit cutback was processed.
Three diamonds above 100 carats were recovered during the quarter, taking year-to-date recoveries of stones that size to six, and two such diamonds were sold in the period, including the 347-carat Lesotho Jubilee white Type II stone recovered in the second quarter.
Four diamonds sold for more than $1 million each, contributing $22.2 million to quarterly revenue.
Clifford Elphick, Gem Diamonds' chief executive, said September sales achieved good prices, "with results further supported by the sale of the exceptional 347-carat Lesotho Jubilee", adding that the results were encouraging indicators that demand and prices for Letšeng-quality diamonds are firm.
Gem Diamonds said it is positively revising its full-year 2026 guidance following strong operational performance and cost containment, though the revised figures were not disclosed in the detail provided.
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The company said the Government of Lesotho has approved a variable royalty rate of between 3% and 6%, determined on the six-monthly average dollar per carat, effective for sales after 1 October, following a royalty remission that had applied to Letšeng Diamonds up to the end of September.
Elphick described the move as "a good policy decision ensuring the long-term sustainability of the mine."
The Group's revolving credit facilities expire on 21 December, and Gem Diamonds said renewal is progressing, with commercial terms being finalised with Nedbank and Standard Bank.