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RAPAPORT...
Gemfields plc. reported that revenue rose to $160.1 million for the fiscal year that ended on June 30, far surpassing revenue of $48.4 million one year earlier. The integrated gemstone mining company's profit surged to $16.3 million compared with a loss of $22.8 million. Gemfields held cash of $36.8 million on June 30 and it estimated that inventory on hand, excluding fuel and other consumables, totaled $86.3 million.
During the company's fiscal year, Gemfields' production of emerald and beryl fell 32.7 percent to 20.2 million carats. Three auctions of emerald and beryl mined at Kagem (two of higher quality and one of lower quality) were held in Lusaka, Zambia, generating revenue of $84.4 million. Rough emerald auctions for gems that were not mined directly by the company were held in Jaipur, India, generating revenue of $22 million.
Bulk sampling from Montepuez Ruby Mining Limitada in Mozambique resulted in approximately 6.5 million carats of ruby and corundum, up from less than 2 million carats one year earlier. Gemfields held an inaugural rough ruby auction in Singapore in June, generating revenue of $33.5 million from the sale of 1.82 million carats.
Ian Harebottle, the CEO of Gemfields, said that consistent price increases for emeralds demonstrated the firm's commitment to supporting the competitiveness of Zambian emeralds and an affirmation of its global marketing strategy to drive demand.
"The Kagem emerald mine in Zambia continues to be our cornerstone asset and the fact that Kagem is now a fully tax paying entity, and has distributed its first ever dividends to our partners, the government of Zambia, validates the investment, turnaround and growth initiatives initiated when Gemfields acquired 75 percent of Kagem in June 2008. We are very grateful to our dedicated and hard-working team and remain tremendously excited about our expanding global portfolio of emeralds, rubies and sapphires,” Harebottle said.
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