Gemfields’ two key operating assets, the Kagem emerald mine in Zambia and the Montepuez ruby mine in Mozambique (MRM), generated revenues of $89.9 million and $151.4 million respectively in 2023. The company owns 75% in both mines.
Kagem earned $148.6 million, while MRM earned $166.7 million in revenues in 2022.
While the total auction revenues in 2023 declined when compared with 2022, it was the second highest in the group’s history and indicated that the demand for coloured gemstones remains strong, despite having one lower-quality emerald auction in the year.
Meanwhile, a review of Gemfields’ 6.54% shareholding in Sedibelo Resources, the South African platinum group metals (PGM) mining company, has resulted in a fair value write-down of $28 million to $4 million.
The write-down of the asset reflects the reduced public market valuations for comparable PGM companies and the reduced operating and financial results for Sedibelo over the period.
Sedibelo is non-core to the Gemfields business.
Gemfields said it is reasonably certain that, after taking this write-down into account, its net loss after tax will be $2.8 million for the year ended December 31, 2023.
“The loss is driven primarily by the Sedibelo unrealised non-cash write-down and the withdrawn higher-quality emerald auction, the production of which will be offered for sale in 2024, and is not a reflection on the overall strength of the Gemfields business,” it said.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
