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Gemfields Group Ltd on Friday described its interim financial performance as ‘disappointing’, after incurring a loss due to a slump in auction revenue and skipping a dividend. The London-based miner and marketer of coloured gemstones suffered a pretax loss of $23.7 million for the six months to June 30, swinging from a profit of $25.1 million a year earlier. Shares in Gemfields were down 10% to 5.50p each on Friday morning in London, but were flat at R 1.45 in Johannesburg. Revenue for the first half of 2025 was $64.2 million, down 47% from $121.4 million due to the disruption to the auction schedule. Total auction revenue from two key assets, Montepuez ruby mine in Mozambique and Kagem emerald mine in Zambia, plunged by half to $60.0 million from $120.6 million, primarily due to fewer carats offered. ‘However, pricing and demand provided some encouragement,’ Gemfields said. ‘Whilst the results are disappointing, strong underlying demand for high-quality gemstones continues,’ the group said. Gemfields declared no interim dividend, having paid out 0.86 US cents a year before. Loss per share was 1.7 cents, swung from earnings per share of 0.6 cents, while headline loss per share was 1.5 cents, flipped from headline EPS of 0.6 cents. In June, Gemfields raised $30.0 million through equity rights issue, offering 556.2 million shares. Late last month, it completed the sale of its luxury brand Faberge Ltd to SMG Capital LLC for $50.0 million. Going forward, Gemfields said it is focused on completing key growth projects. The commissioning of Montepuez ruby mine’s second ruby processing plant remains on track for completion in the second half 2025 and will significantly increase the mine’s processing capacity. ‘While market conditions remain uncertain, strong underlying demand for high-quality gemstones, improved pricing trends, and a stronger balance sheet support a cautiously optimistic outlook for the remainder of the year and into 2026,’ it said. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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