Gemfields Revenue and Profit Slip Amid Dampened Sentiment

Revenue and profit fell in the first half at Gemfields as economic challenges weakened the market for its rubies and emeralds.

Sales fell 17% to $128 million for the six months that ended June 30, the company said last week. Meanwhile, profit dropped 25% to $13.7 million. Gemfields operates the Kagem emerald mine in Zambia, as well as the Montepuez ruby mine in Mozambique. It also holds other assets, including Fabergé.

However, the miner doesn’t believe the slowdown in demand seen in the first half will continue through the end of the year.

“The weakness seen at our September commercial-quality emerald auction brings some uncertainty, but we consider it unlikely that the November higher-quality emerald auction, or the December mixed-quality ruby auction, will yield below-par results of a similar scope,” said Gemfields CEO Sean Gilbertson.

An investment in the processing plants at both deposits also affected the miner’s bottom line, it explained. Gemfields built a second plant at Montepuez, which it expects to complete by the end of June 2025. The new addition, which cost the company $70 million, will enable it to triple its ore-processing capacity and increase the size of the rough it offers. It recently finished upgrading Kagem’s processing plan, it added.

Image: Rough rubies. (Gemfields)