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Gemfields 1H Revenue Jumps, Profit Triples

Mar 9, 2015 9:24 AM   By Deena Taylor
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RAPAPORT... Gemfields plc reported that its revenue rose 57 percent year on year to $103.4 million during the six months that ended on December 31. The company attributed the rise to strong demand at its gemstone auctions and increased production from  its emerald and ruby mines.

The company's profit more than tripled to $23.2 million. The company had $49.7 million cash in hand, while its inventory at the end of the period was valued at $101.1 million.

During the period, emerald production at the Kagem mine in Zambia increased 16 percent year on year to 12.1 million carats. Meanwhile, ruby and corundum production at the company's 75 percent owned Montepuez ruby deposit in Mozambique rose 23 percent to 6.1 million carats.

The company recovered a 40.23-carat rough ruby in Montepuez during the period, which  sold at auction in December 2014. The second ruby auction of the year fetched a record $43.3 million or an average price of $688.64 per carat, the highest ever achieved at any Gemfields auction.

Ian Harebottle, Gemfields' CEO, explained that there is ongoing significant demand for the company's responsibly-sourced colored gemstones and opportunity for the company's sustained growth.

"With two further ruby auctions scheduled in the financial year, continued organic growth at both Kagem and Montepuez, and a clear focus on continued acquisitions and expansion, we look forward to a strong and successful second half of this financial year," he added.

The company expects a steady increase in demand and the associated positive impact on achievable prices to continue for the foreseeable future.

Gemfields will hold its next auction of lower-quality rubies from Montepuez in Jaipur in March and April, with an auction of higher-quality rubies set to take place in Singapore in June.

Tags: Deena Taylor, emeralds, Gemfields, Ian Harebottle, ruby
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