News

Advanced Search

Gemfields Sales Dented by India Liquidity Slump

Feb 26, 2017 10:54 AM   By Rapaport News
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share


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
Tags: colored gemstones, Demonetization, emeralds, Gemfields, Graham Mascall, India, Kagem, Rapaport News, rubies, zambia
Similar Articles
GemfieldsNirav Modi Crisis Hits Gemfields
May 27, 2018
Proceeds slumped at Gemfields’ May auction of higher-quality rough emeralds as the Nirav Modi fraud case hurt
Gemfields 150 121417Gemfields Owner Reduces Staff, Salaries
Dec 14, 2017
Colored-gemstone producer Gemfields is taking measures to reduce debt and revive profit growth, following its acquisition
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2018 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.