Gemfields suffers heavy H1 loss as Covid-19 disrupts auctions

Gemfields says it is reasonably certain that its net loss after tax will be $56.7 million for the six months ending 30 June 2020 compared to a net profit after tax of $12.4 million, a year earlier.
The coloured gemstones miner said in a trading statement that loss per share is expected to be 4 cents for the first half of the year compared to earnings per share of 1 cent for the comparative period. 
Gemfields' 2020 auction schedule was severely impacted by travel, quarantine and congregating restrictions put in place to mitigate COVID-19 contagion. 
The company has so far conducted a single auction as a result of the COVID-19 pandemic.
The auction yielded $11.5 million from the sale of commercial quality emeralds in February 2020. Auctions originally scheduled for May, June and August were cancelled. 
“Gemfields remains unable to provide reliable guidance as to when it might next be able to host gemstone auctions or generate meaningful revenue from gemstone sales,” it said.
Gemfields is the operator and 75% owner of both the Kagem emerald mine in Zambia and the Montepuez ruby mine in Mozambique.
In addition, Gemfields also holds controlling interests in various other gemstone mining and prospecting licenses in Zambia, Mozambique, Ethiopia and Madagascar.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished