Gem Diamonds Stock Plummets 18% on $104M Loss

Stock Price Collapse: Shares fell <strong class="body_output text-content_primary font-semibold" node="[object Object]">18% to a new low of 3.78p following the earnings announcement.
Massive Annual Loss: The company posted a <strong class="body_output text-content_primary font-semibold" node="[object Object]">$104 million attributable loss for 2025 , driven by a $77.5 million impairment charge.
Operational Decline: Revenue dropped to <strong class="body_output text-content_primary font-semibold" node="[object Object]">$98.4 million , while underlying EBITDA collapsed from $29.7 million to just $3.9 million.

Shares Collapse 18% Following $104M Annual Loss

Gem Diamonds Limited (LSE:GEMD) shares plummeted 18% to 3.78p on Wednesday after the company announced a $104 million attributable loss for the 2025 financial year. The sharp decline in market value reflects a severe blow to investor confidence, erasing a significant portion of the company's capitalization in a single trading session.

Letšeng Mine Writedown Erases $77.5M in Value

The primary driver of the net loss was a substantial $77.5 million non-cash impairment charge against the carrying value of its flagship Letšeng mine in Lesotho. This asset writedown compounded a sharp deterioration in operational performance. Company revenue for 2025 fell to $98.4 million from $154.2 million a year prior. Consequently, underlying EBITDA (earnings before interest, tax, depreciation, and amortization) collapsed to just $3.9 million, down from $29.7 million in the previous period, signaling deep-seated challenges at the company's core operations.