High inflation, interest rate hikes and slow overall economic growth in major economies impacted negatively on the diamond market in 2023, putting pressure on rough and polished diamond prices.
These factors contributed to London-listed Gem Diamonds reporting a 26% year-on-year decrease in revenue to $140.3-million for the 2023 financial year, as well as a 65% year-on-year decrease in earnings before interest, taxes, depreciation and amortisation to $15.2-million.
Gem posted an attributable loss of $2.1-million, compared with a profit of $10.2-million in 2022.
"2023 was a challenging year globally with surging inflation and interest rate increases in major economies, two international conflicts and a subdued overall global economic outlook which had a significant negative impact on the diamond industry. Our financial results suffered primarily as a result of a decrease in revenue because of lower diamond prices.
"We have relentlessly focused on cost control measures, enhanced operational efficiencies, rigorous evaluation of capital projects and the deferment of non-essential longer-term projects," comments CEO Clifford Elphick.
He adds that the pressure on the diamond market has persisted into this year, but says there have been some signs of price recovery.
"We are cautiously optimistic that prices will stabilise and that there will be some growth towards the end of 2024," he says.