Further to an operational update for the six months June 30, published in July, Gemfields has released a trading statement ahead of the release of its interim results on September 26, with CEO Sean Gilbertson indicating that multiple transient challenges gave rise to short-term cash flow challenges.

"Gemstone production proved challenging throughout the period at both mines operated by Gemfields, with Montepuez Ruby Mining (MRM) experiencing a decrease in the production of premium rubies, and Kagem Mining having halted mining operations at the end of 2024 and operating only the wash plant until May this year when two focussed emerald production points were re-opened,” he explains.

Gemfields’ two key operating assets, MRM and Kagem Mining, generated revenues of $38.9-million and $21.1-million, respectively.

Total auction revenues for the period were $60-million, significantly lower than the same period in 2024, primarily owing to fewer premium carats being available for auction as a result of lower grades at MRM, the implementation of the 15% export duty on emeralds in Zambia (since revoked) and the suspension of mining at Kagem for much of the six months under review.

However, pricing and demand provided some encouragement, Gemfields points out.

The group successfully completed a fully underwritten $30-million rights issue on June 13.

Additionally, post-period end, it completed the sale of its entire interest in wholly owned luxury brand Fabergé for $50-million, on August 29.

Of this amount, $44.7-million was received on completion, while the remaining $5-million will be paid via quarterly royalty payments equal to 8% of Fabergé’s revenue starting on July 1, 2026.

Both transactions improved the group’s liquidity and working capital position.

Gemfields says it is reasonably certain that its net loss after tax for the period under review will be $4.6-million, compared with a net profit after tax of $13.7-million reported for the comparable six months of the prior financial year.

The reported loss reflects the lower auction revenues arising from a disrupted auction schedule. However, disciplined cost control helped to limit the impact, the group says.

“Gemfields has simplified its business, removed costs and is focused on securing profitability across the group, enhanced by the exciting prospect of increased ruby production courtesy of the second processing plant at MRM. I look forward to these actions bearing fruit in the second half of this year,” Gilbertson avers.