The miner took a $10.7 million goodwill impairment at its flagship Letšeng mine in Lesotho, reversing a $2.1 million profit in the same period last year. Production fell to 47,125 carats from 55,873, while average prices dropped to $1,008 per carat from $1,366, dragging revenue down 42% to $45.4 million.

CEO Clifford Elphick warned of “sustained pricing pressure, softer demand in key markets, and ongoing macroeconomic and geopolitical uncertainty,” in the company’s half-year report.

In response, Gem Diamonds will accelerate cost cuts, scaling back Letšeng operations, trimming salaries for senior management, and laying off about 240 employees — nearly one-fifth of the mine’s workforce.

Shares plunged more than 35% in London trading to 4.3 pence, valuing the company at just £6.1 million ($8.2 million).

The downturn mirrors wider industry struggles, with Lucapa entering administration, Lucara warning on survival, and Burgundy halting operations at Canada’s Ekati mine. Meanwhile, De Beers remains in limbo as Anglo American seeks an exit.