Gemfields’ revenues slip 9% in six months closing December 31

In the six month period closing December 31, 2015, Gemfields recorded a 9 percent decline in its revenues to US$94.0 million. The company’s profits slipped drastically by 65 percent as per the company’s Interim Report and Financial Statements, reports say. Net profit valued US$8.2 million.

The company’s EBITDA valued US$35.6 million after a 42 percent fall, which it notes is due to a more equally planned auction mix between the first and second halves of the 2016 financial year when compared to the 2015 financial year wherein a significant part of the revenue (and margin) was achieved in the first half.

In the said six months, the company held three auctions. This included two rough emerald and beryl auctions consisting of one higher quality and one lower quality emerald and beryl auctions, similar to the comparative prior period. The third was a rough ruby and corundum auction offering higher and medium quality rough ruby and corundum, compared to a higher quality rough ruby auction held in the comparative prior period.

Gemfields plans to hold two further auctions of rough emerald and beryl during the second half of the financial year 2016 with the next auction of predominantly higher quality rough emeralds expected to take place in March 2016.

The company is confident of its marketing strategies and of the significant opportunity that continues to exist within the coloured gemstone market, as per reports.

Its wholly owned Fabergé Ltd saw the value of realised sales during the period increase by 70 percent when compared with the same period in 2014.

Production at its 75 percent owned Kagem mine stood at15.7 million carats of emerald and beryl. At its 75 percent owned Montepuez Ruby Mining Limitada, its rubies production stood at 2.1 million carats of ruby and corundum (2014: 6.3 million carats). The Company retains its production forecast of 25 to 30 million carats for rough emerald and beryl, and 8 million carats of ruby and corundum for the 2016 financial year.