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Gemfields Group Ltd on Thursday reported its interim profit more than doubled in the first half of 2022, due to record-breaking auction results.
The London-headquartered gemstones supplier multiplied its pretax profit to $84.8 million for the first six months to June 30 from $38.0 million in the prior year.
Revenue doubled to $193.2 million from $97.2 million following three auctions held in the first half.
Gemfields' auction revenue stood at $181 million, a new record for a six-month period. The first-half record of $93 million was set in 2018.
Kagem Kagem Mining Ltd generated auction revenue of $85.2 million, up sharply from $31.2 million from one commercial-quality auction held during March and April, and a higher-quality auction held in May.
Montepuez Ruby Mining Ltda's mixed-quality ruby auction, held as seven sequential mini-auctions in Bangkok during May and June, delivered all-time high auction revenue for any Gemfields auction at $95.6 million.
Gemfields declared an interim dividend of 1.3 US cents. It made its first payout of 1.7 cents in some 17 years for 2021.
‘It is pleasing to report that the first half of 2022 has seen Gemfields Group Ltd continue its robust upward trajectory from 2021, with record-breaking auction revenues and an all-time high in terms of the cash position,’ said Gemfields Chair Martin Tolcher.
As at June 30, the group was in a net cash position of $81.8 million, up from $63.0 million as at December 31, and held a gross cash balance of $111.5 million, higher than $97.2 million.
Gemfields said it continued to welcome the increasing scrutiny of its coloured gemstone supply chain.
‘A number of independent audits commenced during the period as major brands familiarise themselves with our operations,’ it said.
In its outlook, Gemfields said the current buoyant coloured gemstone market, alongside the encouraging production at both Kagem and MRM, mean that it remains optimistic for the second half.
Gemfields shares were up 2.8% at 18.50 pence in London early Thursday. They were untraded at R 3.42 in Johannesburg.
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