Gem Diamonds’ revenue fell in the first quarter as the company held higher-value goods from tender due to uncertainty over how tariffs would affect sales.
Sales plunged 50% year on year to $21.6 million for the three months that ended March 31, the company said Wednesday. Sales volume slid 37% to 20,470 carats, while the average price declined 20% to $1,055 per carat.
The result reflected a planned switch to mining ore from the lower-grade, lower-value main pipe at the company’s Letšeng mine in Lesotho, rather than from the higher-grade, higher-value satellite pipe, Gem Diamonds noted. The miner also pushed back the tender of its better-quality goods, which was scheduled to take place during the period, amid fears over how tariffs would affect the bottom line. It has now rescheduled that rough for sale in the second quarter.
Revenue fell 33% from the fourth quarter of 2024, with sales volume down 22%. The average price slipped 14%.
The company sold two diamonds for more than $1 million each during the first three months of the year, contributing $3.5 million to total revenue. That compares with five diamonds a year ago, for $18.6 million. A 57.50-carat white diamond, which sold for $26,441 per carat, garnered the highest price in the first quarter of 2025.
Production for the period decreased 23% to 23,578 carats because of the mining of lower-grade ore.
Meanwhile, following the close of the first quarter, Gem Diamonds recovered two high-quality type 1 diamonds weighing 194.52 and 109.95 carats. Those will be sold in the second quarter, the company added.
Image: A large rough diamond. (Gem Diamonds)
