Gem Diamonds: fewer carats sold but higher prices at Letšeng in Q1

Mining · Lesotho

Gem Diamonds posted revenue of $32.1-million from its Letšeng mine in Lesotho for the March quarter, sustained by the sale of exceptional large stones despite a fall in overall carat volumes, with all operational metrics remaining within 2026 guidance.

Gem Diamonds (LSE: GEMD) recorded revenue of $32.1-million for the quarter ended 31 March 2026, with its primary production export of 16,727 carats achieving an average selling price of $1,501 per carat, up 17% on the previous quarter.

The company also sold an additional parcel of ten diamonds each weighing more than 10.8 carats, generating a further $7-million in revenue and bringing total quarterly sales to $39.1-million. Production at the Letšeng mine, in the Maluti mountains of Lesotho, was weighted toward the lower-grade Main Pipe in line with the mine plan, with a reduced contribution from the higher-value Satellite Pipe.

“Large exceptional diamonds continue to underpin Letšeng’s value proposition.” — Gem Diamonds, Q1 2026 results statement

The highest price achieved during the quarter was $32,908 per carat for a 52.24-carat white diamond. Four stones sold for more than $1-million each, generating aggregate revenue of $9.9-million.

Ore treated slipped 3% quarter-on-quarter to 1.33-million tonnes, while carats recovered rose 3% to 21,605. The fall in carats sold, down 21% to 16,727, reflected the deferral of certain parcels into the second quarter rather than any operational shortfall.

Two diamonds exceeding 100 carats were recovered during the period: a 191.82-carat Type IIa white diamond and a 100.71-carat Type I faint yellow diamond. Both are scheduled for sale in the quarter to 30 June 2026. Waste stripping increased sharply to 70,943 tonnes from 48,304 tonnes in the fourth quarter of 2025, reflecting continued investment in mine development.

Gem Diamonds holds a 70% interest in Letšeng, which is widely regarded as the world’s highest dollar-per-carat kimberlite diamond mine. The results reflect the mine’s structural dependence on large, exceptional stones to maintain revenue at times when production is weighted toward the lower-value Main Pipe.

The broader diamond market continues to face pressure from weaker consumer demand and competition from laboratory-grown stones, which have eroded pricing in the smaller-carat commercial segment. Letšeng’s concentration in large natural diamonds of gem quality has provided a degree of insulation, though the company recorded a net loss and negative free cash flow for the 2025 financial year. Management confirmed that all key operational and financial metrics for the first quarter remain within the company’s full-year 2026 guidance.