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Gemfields recorded a loss in 2025 amid weak demand, falling prices for its goods and the recovery of lower-quality rubies.
The miner reported a loss of $50.9 million for the full year, it said last week. However, the deficit was gentler than the $100.8 million loss the miner posted a year ago. The narrower loss is primarily the result of the miner bringing its Kagem emerald deposit in Zambia back online following a temporary shutdown, as well as cost-saving measures it implemented within its business.
Revenue fell 32% to $135.1 million, reflecting lower demand for emeralds and a reduction in the recovery of premium rubies from its Montepuez mine in Mozambique, it explained. A delay in the commissioning of a new processing plant at Montepuez and heightened illegal mining also played a part, Gemfields stated.
The company reduced its operating costs to $128.9 million from $156.2 million in 2024 through measures that included selling its Fabergé business for $50 million.
“This was a difficult year, with operational disruptions at both Montepuez and Kagem constraining our premium-gemstone production, auction cadence and cash generation,” said Gemfields CEO Sean Gilbertson. “Seven auctions generated just $129 million, reflecting both the shortfalls in gemstone availability and bumpy market conditions, despite continued pricing resilience at the top end of the ruby and emerald quality spectrum.”
During the year, the company lowered its net debt from $80.4 million to $39.3 million.
However, the miner sees difficulties persisting in the beginning of 2026.
“The first half is expected to remain challenging as we iron out the new processing plant’s teething issues,” Gilbertson added. “We continue to monitor the challenging geopolitical developments closely. The situation in the Middle East has already increased costs…and any further escalation could materially impact cost and market conditions.”
Image: Polished emeralds from the Kagem mine. (Gemfields)
