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Gemfields Sales Dented by India Liquidity Slump

Feb 26, 2017 10:54 AM   By Rapaport News
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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
Tags: colored gemstones, Demonetization, emeralds, Gemfields, Graham Mascall, India, Kagem, Rapaport News, rubies, zambia
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