Gemfields suffers more interim loss after impairment charges

Gemfields Group Ltd reported on Wednesday that its interim loss deepened as it grappled with challenges at its ruby mine in Mozambique and booked impairment charges.

The London-based miner and marketer of coloured gemstones incurred pretax loss from continuing operations of USD102.0 million for the six months that ended June 30, widened from USD23.7 million a year earlier.

Gemfields has classified luxury brand Faberge Ltd as discontinued asset. It sold thi business to SMG Capital LLC for USD50 million in September 2025.

For the first half, Gemfields took impairment charges of USD125.2 million, compared to none a year prior.

Revenue from continuing operations was USD106.0 million, up 65% from USD64.2 million. Earnings before interest, taxes, depreciation and amortisation from continuing operations was USD40.7 million, swung from loss of USD4.9 million.

Loss per share from total operations widened to 4.3 US cents from 1.7 cents, while total headline earnings per share was 0.6 cents, flipped from headline loss per share of 1.5 cents.

"The first half of 2026 was a difficult period for Gemfields, driven principally by the continued shortage of premium ruby recoveries at Montepuez Ruby Mining, which remains the group's most significant operational and financial challenge," Gemfields Interim Chief Executive Officer & Chief Financial Officer David Lovett said.

The second processing plant at Montepuez became largely operational and recent ruby recoveries have shown signs of improvement. "However, it is too early to determine whether these results represent a sustainable improvement in grade and recoveries," Lovett said.

Zambia-based Kagem Mining Ltd delivered good emerald production, but higher diesel costs and a stronger Zambian kwacha weighed on profitability, he said.

Looking ahead, Gemfields said it remains focused on stabilising Montepuez's operating performance.

In London early Wednesday, Gemfields shares were up 7.7% to 3.50 pence, while they were down 1.5% at 66.00 rand cents in Johannesburg.

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