Gem Diamonds reports revenue jump despite plummeting demand for mined stones

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Gem Diamonds has reported a strong start to its financial year despite falling demand.
Gem Diamonds has reported a strong start to its financial year despite falling demand.

Mining company Gem Diamonds has reported a strong start to its financial year after uncovering eight diamonds over 100 carats in the first six months of 2024.

The London-listed firm, which mines in the Maluti Mountains of Lesotho, said the high-carat finds had helped its revenue soar to $77.9m (£60.8m) compared to $71.6m (£55.9m) in the first six months of 2023.

After the reporting period, a 145-carat type II white diamond was discovered, making it the ninth diamond over 100 carats recovered this year.

In total, Gem Diamonds sold 56,944 carats worth of diamonds, up from 52,163 carats in the same period last year.

The highest price achieved in the six-month period was $41,007 (£32,020) per carat for a 62.78-carat white diamond.

A total of 11 diamonds sold for more than $1m (£781,000) each, generating revenue of $29.5m during the six months.

Demand for mined diamonds has slumped in recent years as cheaper man-made products have taken over the market.

Gem Diamonds’ fellow London-listed miner, Anglo American, announced in April it had cut output at its De Beers arm following a near-total bottom-out in consumer demand for diamonds at the end of last year.

Anglo said that De Beers would aim to produce 26-29m carats of diamonds this year, down from the previous target of up to 32m carats, with unit costs altered to $90 per carat (£72.81).

In late October 2023, Canada’s Stornoway Diamonds filed for bankruptcy for a second time. 

Experts attribute the plummeting demand for mined stones to the emergence of lab-grown diamonds as an alternative. 

Max Spicer, sales consultant at London Diamonds, told City PM in March that  90 per cent of people choosing an engagement ring at his store in the last two years had chosen lab grown.

He added: “We built our business on mined diamonds, and we were quite sceptical about lab-grown.

“But once you get your head round that they’re identical… it’s pretty hard to tell someone to spend five to 10 times more money on a mined diamond, right?”