Gemfields shares tumble as CEO Sean Gilbertson exits amid challenges
Gemfields Group Ltd said on Tuesday Chief Executive Officer Sean Gilbertson will step down, with effect from July 15.
The London-based miner and marketer of coloured gemstones also reported that it faced challenges over the commissioning of second processing plant at Montepuez Ruby Mining Ltda in Mozambique challenges, while grappling with security-related disruption, illegal mining activity and delayed VAT receipts in that country.
The company appointed David Lovett as interim CEO, alongside his existing role as chief financial officer, and indicated it will in due course start a formal process to identify a permanent successor.
During this interim arrangement, Chair Bruce Cleaver has agreed to dedicate additional time to supporting the business and the management team.
Separately, Gemfields said it had generated revenue of USD23.1 million at an auction of mixed-quality rough ruby held from June 22-29. This was sharply down from USD53 million earned at an auction held in February this year.
Rubies were extracted by Gemfields' 75%-held Montepuez.
The company said it is undertaking additional targeted bulk sampling in areas considered prospective for higher-grade material, with the aim of enhancing grade outcomes.
Gemfields had said in May that Montepuez had experienced lower-than-expected ruby production, primarily driven by declining recovered grades.
The final commissioning of the second processing plant at Montepuez remains subject to a number of stabilisation, remedial and optimisation activities.
It noted that it expects commissioning under the fixed-price construction contract during the third quarter of 2026.
Gemfields also said Montepuez had endured attacks attributed to insurgents from April 30.
Threats in Mozambique also arise from locally driven criminal activity, the presence of illegal ruby mining syndicates and broader "destabilising" factors in the region, it said.
Montepuez is owed USD28.3 million in value-added tax refunds and faced new VAT increase, which has had a materially negative impact on its cash flow.
Gemfields expects plans to release its interim financial results on or before July 31.
In London on Tuesday, Gemfields shares were down 3.9% to 3.70 pence, while they were down 12% to 75 rand cents in Johannesburg.
Copyright 2026 Alliance News Ltd. All Rights Reserved.