London-listed Gem Diamonds, which owns and operates the Letšeng mine, in Lesotho, has swung to an attributable loss of $11.7-million for the six months ended June 30, on the back of a $10.7-million goodwill impairment.

The loss compares with an attributable profit of $2.1-million reported for the six months to June 30, 2024.

Taking into account the prevailing market conditions, current diamond prices and exchange rates, the recoverable amount of Letšeng was assessed and an impairment of $10.7-million recorded to bring the carrying value in line with the recoverable amount.

"The industry continues to face significant challenges. Sustained pricing pressure, softer demand in key markets, ongoing macroeconomic and geopolitical uncertainty and tariff uncertainties in respect of India, combine to create difficult trading conditions," comments CEO Clifford Elphick.

The company has reiterated its plans to scale back operations at Letšeng mine in order to cut costs.

"[First-half] production targets were achieved, however, revenue decreased significantly. In response, key decisions to adapt the mine plan to reduce costs, necessitated the unfortunate retrenchment of 240 employees at Letšeng. While deeply regrettable, these actions position Letšeng to operate sustainably," Elphick says.

During the six months to June 30, the company recovered 47 125 ct of diamonds, compared with the recovery of 55 873 ct of diamonds in the first half of 2024.

The average price per carat received for the six months under review was $1 008, compared with the average price received of $1 366 in the first half of 2024. As a result, revenue decreased to $45.4-million, from $78-million in the prior comparable period.

Diamond miners across the world are struggling amid lower demand, lower prices and tariff uncertainty.

TSX- and BSE-listed Lucara Diamond in May warned that there was “significant doubt” about its ability to continue as a going concern.

The diamond mining industry is seeking ways to promote natural diamonds, as cheaper lab-grown diamonds have grown in popularity.