Gemfields warns of interim loss as auction revenue falls sharply
Gemfields Group Ltd reported on Tuesday it expects to swing to loss in the first half of 2025 due in part to a slump in auction revenue.
The London-based miner and marketer of coloured gemstones guides for loss per share of 1.7 US cents for the six months that ended June 30, swung from earnings per share of 0.6 cents a year earlier.
Headline loss per share is likely to be 1.5 cents, flipped from 0.6 cents.
Gemfields in June this year raised $30.0 million through equity rights issue. It offered 556.2 million new shares.
The gemstones group said it is reasonably certain that its net loss after tax will be $24.6 million, swung from net profit of $13.7 million, blaming lower auction revenues arising from a disrupted auction schedule.
Gemfields said its two key operating assets, Montepuez ruby mine in Mozambique and Kagem emerald mine in Zambia, generated combined revenue of $60.0 million for the first half, down 50% from $120.6 million a year before.
Looking ahead, Gemfields expects the commissioning of the second processing plant at Montepuez mine to ‘positively impact’ performance in the fourth quarter of 2025.
Gemfields plans to release its interim financial results on Friday.
In London, Gemfields shares were up 2.4% at 6.02 pence on Tuesday afternoon. They rose 3.5% in Johannesburg to R 1.50.
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