Luxury & gemstone sectors are facing greater uncertainty

 

Gemfields revenue, reduced compared to the same period last year 

In accordance with the JSE Listings Requirements, Gemfields advised that the Company is reasonably certain of its expected financial interim results for the six months ended 30 June 2024. Gemfields’ two key operating assets, Kagem Mining Limited and Montepuez Ruby Mining Limitada (MRM), generated revenues of USD 51.9 million and USD 68.7 million respectively in the six months to 30 June 2024 (2023 H1: Kagem – USD 64.6 million; MRM – USD 80.4 million). 

At the occasion Sean Gilbertson, CEO of Gemfields, commented, “Further to our operational update for the six months to 30 June 2024, which was published on 26 July, we are pleased to provide this trading statement ahead of the release of our Interim Results on Friday 27 September 2024.

As previously disclosed, the Group generated auction revenues during the period of USD 120.6 million, as well as USD 6.6 million from Fabergé, contributing to another profitable period albeit at a reduced level when compared to the same period last year. This month we experienced a weaker-than-expected commercial-quality emerald auction.  

While this increases the uncertainty we face, management considers it unlikely that the November higher-quality emerald auction or the December mixed-quality ruby auction will see below par results of a similar scope. 

While higher-quality gemstones typically remain more robust than lower-quality gemstones in challenging times, we remain vigilant given that the luxury and gemstone sectors are facing greater uncertainty than we have seen in the last three years. While we continue to invest in our future having completed the Kagem processing plant upgrade, and with the construction of MRM’s second processing plant materially on time and within budget, for completion by the end of H1 2025, we will maintain a keen focus on working capital and capital allocation.”