Gemfields is anticipating a net profit after tax of $18.1 million for the six months ending 30 June 2023, compared to $56.7 million for the same period in the prior year.
During the first six months of the year, Gemfields' two primary operating assets, Kagem emerald mine in Zambia and Montepuez ruby mine (MRM) in Mozambique, accrued revenues of $64.6 million and $80.4 million, respectively.
Kagem's revenue for the six months ending on 30 June 2022 was $85.2 million, whereas that of MRM was $95.6 million.
The commercial-quality emerald and mixed-quality ruby auctions saw solid demand for coloured gemstones, while June's sale of higher-quality emeralds set a new record for any Kagem auction, according to Gemfields.
During the period under review, Fabergé's revenue decreased to $8.4 million from $9.5 million in the prior year due to a weaker luxury market.
Fabergé, a wholly-owned subsidiary of Gemfields, provides direct access to the end-consumer of coloured gemstones through directly operated boutiques and international wholesale partners.
In the meantime, Gemfields' review of its Sedibelo Resources stake resulted in a $13.3 million write-down to a $18.7 million fair value adjustment.
“The write-down of the asset reflects the reduced public market valuations for comparable platinum group metals companies and the reduced operating and financial results for Sedibelo over the period,” it said.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
