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Gemfields Group Ltd said on Thursday it expects interim profit to tumbled by over two thirds on the back of sharply lower top-line growth. The London-headquartered gemstones supplier guided for net profit after tax of $18.1 million for the six months that ended June 30, down 68% from $56.7 million. In rand terms, the net profit after tax is expected to plunge by 61% to R 334 million from R 864 million. Over this period, earnings per share is seen plummeting to 0.8 US cents from 3.7 cents. EPS slumped to 14.9 rand cents from 57.1 cents. Headline EPS is likely to tumbled to 0.8 US cents from 3.7 cents. HEPS in rand terms is estimated at 14.9 cents from 57.1 cents. In London, Gemfields shares shed 11% to 13.08 pence on Thursday morning. They slumped 8.7% in Johannesburg to R 3.17. Gemfields said its two key operating assets, Kagem emerald mine in Zambia and Montepuez Ruby Mining Limitada, generated revenues of $64.6 million and $80.4 million, respectively in the first half, compared to $85.2 million and $95.6 million. Luxury brand Faberge, a Gemfields subsidiary, recorded revenue of $8.4 million, down 12% from $9.5 million, due to a softer luxury market. The gemstones supplier said a review of its shareholding in Sedibelo Resources Ltd had resulted in a fair value write down of $13.3 million to $18.7 million, reflecting the reduced public market valuations. Gemfields expects to release its interim financial results on Friday next week. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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