Maseru, 24 July 2025 – In a powerful signal of solidarity during turbulent times, Clifford Elphick, Chief Executive Officer of Gem Diamonds, is reportedly offering to take a substantial reduction in his own compensation—currently estimated at LSL 25.9 million per year—to support the restructuring efforts aimed at saving Letšeng mine and preserving livelihoods in Lesotho.
Gem Diamonds, owner of the high‑altitude Letšeng mine in Lesotho, has embarked on sharp cost‑cutting measures amid a steep global slump in rough‑diamond prices, weaker US dollar exchange rates, and pricing pressures from synthetic alternatives. As part of this financial response, the company announced a reduction of waste mining volumes by almost half and is laying off roughly 250 staff, equating to 20% of Letšeng’s workforce.
Alongside job cuts and operational throttling, the company has also initiated temporary salary reductions for its board, executives and management, with the possibility that pay will be partially replaced by share awards to align leadership incentives with shareholder interests.
In what is being interpreted by industry observers as a courageous act of leadership, Elphick is believed to be offering to trim his annual pay—previously reported as LSL 25,879,140 in 2022—to “save” Letšeng. That level of executive compensation, when translated from USD benchmarks, is considerably high for a company of Gem Diamonds’ current market capitalisation and earnings profile.
At the heart of this gesture is a symbolic and practical commitment: Elphick is prepared to reduce his own income in real terms to bolster Gem Diamonds’ ability to weather one of the most challenging market periods in years—and in doing so, preserve jobs and investment in Lesotho.
Gem Diamonds has confirmed that these changes are expected to cut costs by US$1.4–1.6 million per month. Waste stripping tonnage has been cut back from more than 5 million to approximately 1.8–2 million tonnes annually, while carat production and sales have declined sharply year-on-year, sales value falling 46% to US$ 44.7 million in the first half of the year.
Despite meeting production targets, the firm continues to face margin erosion—a decline made worse by the burden of high executive pay. Industry analysts note that Gem Diamonds, now valued at just £7 million, once boasted a valuation of £550 million; the discrepancy speaks to a dramatic valuation fall that heightens pressure on cost structures at every level.
Letšeng is no ordinary mine—it produces some of the world’s most remarkable high‑value diamonds, including the famed 910‑carat Lesotho Legend and the 603‑carat Lesotho Promise, making it the kimberlite operation with the highest average dollar-per-carat value globally. The mine contributes significantly to the Lesotho economy: as a major local employer, taxpayer, and partner to national interests.
The CEO’s willingness to forego part of his own earnings transcends corporate image—it’s a potential lifeline. By offering to step back financially, Elphick is underlining the message that saving Letšeng is a collective responsibility, starting at the very top.
What’s At Stake
| Key Issue | Why It Matters |
| High executive pay vs low company value | With CEO compensation exceeding LSL 25 million—even as the firm is now valued in single-digit millions—Elphick’s proposed cuts spotlight disparities in value and pay. |
| Layoffs and cost-reduction | Around 250 jobs cut at Letšeng, coupled with major operational downscaling, pregnant with social and economic ramifications locally. |
| Symbolic leadership | Elphick’s offer could set a tone of shared sacrifice, encouraging other executives and stakeholders to participate in the recovery effort. |
| National interest of Lesotho | Letšeng’s continued operation underpins local employment and government revenue; its preservation is of strategic importance to the nation. |
In His Own Words
As Elphick put it in a difficult earnings update: “While the company has met its production targets, it has not been immune to the sustained pressure on rough‑diamond prices and adverse exchange rate movements.” He reaffirmed that the restructuring—including staff reductions and executive pay cuts—was essential to “conserve cash and protect shareholder value”.
If his personal salary cut proceeds, it will be a rare gesture from CEO to frontline workers—a move aimed at preserving the place and people who have long defined Letšeng’s unique brand in the global diamond industry.
Conclusion
Clifford Elphick’s proposed sacrifice of his LSL 25–26 million salary is more than a financial adjustment—it’s a moral statement: that the survival of Letšeng mine, its workforce, and its role in the Lesotho economy matters more than executive compensation. In these uncertain times for the diamond sector, it may just be the leadership move needed to help steer a recovery.
