Gem Diamonds, operator of the Letšeng diamond mine in Lesotho, reported revenue of $59.7 million for the six months ended 30 June, up 32% from $45.4 million in the same period last year.
The swing to profitability came despite a 4% decline in carats sold, as an average price of $1,395 per carat, against $1,008 a year earlier, more than offset the lower volumes.
Underlying EBITDA reached $8.6 million, reversing a negative $2.6 million a year earlier, helped by cost containment measures introduced in July 2025 and extended royalty relief at Letšeng.
"The structural cost measures implemented in July 2025, as well as the extension of Letšeng's royalty relief, are delivering tangible results," said chief executive Clifford Elphick, adding that together these initiatives have "materially reduced our cost base as we navigate the challenging global diamond market."
The company ended the period with cash of $20.2 million, up from $3.8 million at the end of December, and net debt of just $0.5 million, down from $20.1 million.
Waste mined fell 82% to 0.3 million tonnes as ore treated rose slightly to 2.6 million tonnes, though carats recovered dipped to 41,695 from 47,125 as lower-grade Main Pipe ore made up 84% of material treated, versus 68% a year earlier.
The company's revolving credit facilities expire in December, and discussions with lenders on renewal or extension are underway.
Gem Diamonds said production and cost forecasts for the full year remain in line with guidance.
News Intelligence what this means for the company
Gem Diamonds swung to a $0.6 million profit in H1 2026 from an $11.7 million loss a year earlier, driven by a 38% jump in average price per carat (to $1,395 from $1,008) that more than offset a 4% decline in volume. The turnaround was underpinned by cost cuts implemented in July 2025 and extended royalty relief at Letšeng, which lifted underlying EBITDA to $8.6 million from negative $2.6 million. Cash ballooned to $20.2 million from $3.8 million and net debt collapsed to $0.5 million from $20.1 million, materially strengthening the balance sheet.
- The company's revolving credit facilities expire in December 2026 and renewal discussions are underway; the improved cash position and debt reduction should strengthen negotiating terms, though market conditions remain challenging.
Large, exceptional-quality stones showed resilient demand with encouragingly strong prices during H1 2026, validating Letšeng's positioning in the high-value segment where synthetic competition is weaker. The structural cost reductions and balance-sheet repair are material, but full-year guidance remains unchanged despite lower H1 carats, signaling execution risk around the mine plan shift to lower-grade ore and the upcoming Satellite Pipe cutback.
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