Gem Diamonds Faces Challenging Market with Revenue Decline in H1 2025

Gem Diamonds ( (GB:GEMD) ) has provided an update.

Gem Diamonds reported a challenging first half of 2025, with revenue dropping 42% to $45.4 million due to persistent low diamond prices and market conditions. The company recorded a negative underlying EBITDA of $2.6 million and an attributable loss of $11.7 million, prompting measures to conserve cash and protect shareholder value, including workforce rationalization and cost reductions. Despite achieving production targets, the company faced significant pricing pressure, leading to a reduction in the life of the Letšeng mine from 2039 to 2035. Gem Diamonds remains committed to its long-term strategy and is optimistic about a strong recovery when market conditions improve.

The most recent analyst rating on (GB:GEMD) stock is a Buy with a £8.00 price target. To see the full list of analyst forecasts on Gem Diamonds stock, see the GB:GEMD Stock Forecast page.

Spark’s Take on GB:GEMD Stock

According to Spark, TipRanks’ AI Analyst, GB:GEMD is a Outperform.

Gem Diamonds’ overall stock score is driven by its solid financial performance and attractive valuation. The company’s strong cash flow management and improving profitability margins are significant strengths. Technical analysis indicates moderate bullish momentum, although longer-term resistance remains. The low P/E ratio suggests potential undervaluation, enhancing the stock’s appeal.

To see Spark’s full report on GB:GEMD stock, click here.

More about Gem Diamonds

Gem Diamonds is a leading global diamond producer known for its high-value diamonds. The company owns 70% of the Letšeng mine in Lesotho, which is renowned for producing large, exceptional white diamonds, making it the highest dollar per carat kimberlite diamond mine in the world.

Average Trading Volume: 155,147

Technical Sentiment Signal: Sell

Current Market Cap: £9.37M

Find detailed analytics on GEMD stock on TipRanks’ Stock Analysis page.