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Gemfields Sales Dented by India Liquidity Slump
Feb 26, 2017 10:54 AM
By Rapaport News
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RAPAPORT... Gemfields’ half-year revenue plummeted 46 percent as the
company deferred an auction of higher-quality rough emeralds due to tighter
liquidity in India.
Sales fell to $51 million in the fiscal first half that
ended December 31, 2016, the colored-gemstone miner said last week.
The company rescheduled its sale of emeralds from the Kagem
mine in Zambia from December to February to give clients time to adjust to the
Indian government’s decision to invalidate higher-value currency notes in
November.
The miner recorded a loss of $13.6 million versus a profit
of $8.2 million a year ago.
“The documented Indian demonetization policy has
unfortunately had an adverse short-term impact on the group’s financial performance,”
Gemfields’ chairman Graham Mascall said in a statement to shareholders. “While
this in turn will materially impact the current financial year, we remain
confident the longer-term demand fundamentals remain strong for the colored-gemstone
sector.”
The rescheduled auction fetched
$22.3 million at an average price of $64 per carat, the
company said.
Image: Géry Parent
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Tags:
colored gemstones, Demonetization, emeralds, Gemfields, Graham Mascall, India, Kagem, Rapaport News, rubies, zambia
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