In This Article:
-
Revenue: $154.2 million, a 10% increase from the previous year.
-
EBITDA: Nearly $30 million, almost double from the previous year.
-
Earnings Per Share (EPS): $0.021 per share.
-
Net Debt: Reduced from $21 million to $7 million.
-
Carats Recovered: 105,000 carats.
-
Average Dollar Per Carat: $1,390, a 5% increase from the prior year.
-
Profit After Tax: $8.1 million.
-
Operating Costs: Reduced by $23.5 million in cash cost position.
-
Available Facilities: $69 million.
-
Cash Flow from Operations: $77 million generated by Letseng.
Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Gem Diamonds Ltd (GMDMF) achieved a dollar per carat of nearly $1,400, which is considered a good result despite significant market headwinds.
-
The company successfully reduced its net debt from $21 million to $7 million over the year.
-
Gem Diamonds Ltd (GMDMF) reported an EBITDA of nearly $30 million, translating into earnings per share of just over $0.02.
-
The company achieved a record low all-injury frequency rate of 0.61, indicating strong safety performance.
-
Gem Diamonds Ltd (GMDMF) is on track to meet its decarbonization target of 30% by 2030, with a current reduction of 27%.
Negative Points
-
The diamond market faced challenges with constrained Chinese demand and geopolitical tensions affecting prices.
-
Interest rates remained higher than expected, impacting consumer demand and market conditions.
-
Lab-grown diamonds continue to impact consumer demand for natural diamonds, creating market uncertainty.
-
The company experienced a slight decrease in carats recovered, from 110,000 in the previous year to 105,000.
-
Gem Diamonds Ltd (GMDMF) is not in a position to pay dividends due to financial constraints and market uncertainties.
Q & A Highlights
Q: If you are able to extend mining at Satellite Cut 5 West into the second half of 2025 and '26, how would this impact the timing of first ore mining at Satellite Cut 6 West? A: Brandon de Bruin, COO: Extending the life of Cut 5 West will impact the start of waste mining at Cut 6 West. We are working on managing this impact, and it may delay the start of waste mining by up to eight to 12 months.
Q: What is the current size limit of lab-grown diamonds, and is this going to continue to increase? A: Clifford Elphick, CEO: The size limit of lab-grown diamonds is primarily an economic issue. While technology may allow for larger diamonds, the cost of production often outweighs the selling price, making it unprofitable to produce very large lab-grown diamonds.