News

Advanced Search

Gemfields Saw $60M Loss in 2018

Mar 26, 2019 11:32 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share


RAPAPORT...
 Gemfields slid into the red in 2018 due to the impact of a new tax regime and a costly legal case, it said Monday.

The company reported a loss of $60.4 million for the year, compared with a profit of $45.1 million the previous year. In 2018, the Zambian government introduced a 15% tax levy that required Gemfields to have its Kagem emerald mine revalued. This contributed to a $26.6 million devaluation charge, which included an inventory impairment charge of $2.6 million.

Gemfields also paid GBP 5.8 million ($7.7 million) to law firm Leigh Day in a no-admission-of-liability settlement regarding a human-rights-abuse case brought against the company.

Excluding all those charges, as well as other tax-related costs, the company’s profit for the year was $18 million, it noted.

Revenue for the year more than doubled to $206.1 million, compared with $81.7 million in 2017. Proceeds included ruby sales of $127.1 million, and $60.3 million from emerald auctions.

Image: The 5,655-carat Lion Emerald from the Kagem mine, which was recovered in October 2018. (Gemfields)
Tags: Gemfields, Kagem, Kagem emerald mine, Leigh Day, Rapaport News
Similar Articles
Tiffany Stevens JVCCIBJO Publishes Ethics Recommendations
Oct 16, 2019
The World Jewellery Confederation (CIBJO) has produced a special report on ethics ahead of its annual congress
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2019 by Martin Rapaport. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are TradeMarks of Martin Rapaport.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.