Gemfields' achieve strong revenue despite decline in production

Gemfields posted strong revenues in its latest quarter after a record emerald auction in Lusaka in November. The coloured gemstone group has two more emerald auctions scheduled before the end of its financial year in June, with its first ruby auction also expected to occur before then.

Revenues from auctions for the six months to December were U.S. $59.9 million, compared to turnover of U.S. $48.8 million for the whole of its previous financial year. Gemfields’ Faberge arm also saw good trading, with sales over the final quarter rising by 26 percent and December seeing 89 percent growth year-on-year.

Production from the Kagem emerald mine in Zambia was lower over the quarter at 3.9 million carats against 6.6 million, reflecting lower grades, something that also pushed up production costs. Even so, Ian Harebottle, Gemfields’ chief executive, said the final quarter had seen solid progress.