Gemfields reports interim loss but is better placed for a stronger second half

GEMFIELDS Group said on Friday its free cash flow before working capital movements fell to a negative $22.1 million (about R382m) for the six months to June 30 due to lower auction revenue and capital expenditure at Montepuez Ruby Mining (MRM) in Mozambique.

- EDWARD WEST

GEMFIELDS Group said that in the six months to June 30, total revenue came to $64.2 million, well down from R121.41m a year before. I Supplied Gemfields sold its 100% interest in "With the sale of Fabergé and the

The JSE-listed miner and marketer of coloured stones said in its interim financial results that total revenue came to $64.2m, well down from R121.41m a year before.

The earnings before interest, tax, depreciation and amortisation loss came to $4.9m. The net loss came to $24.58m, compared with the $13.67m profit at the same time a year before.

"This has been a challenging first half marked by gemstone production difficulties at both mines. MRM experienced lower premium ruby output while Kagem Mining suspended mining altogether at the end of 2024, with limited operations resuming only in May 2025, CEO Sean Gilbertson said.

Gemfields’ share price fell 6.2% to 136 cents in thin trade on the JSE on Friday, and the price was 40% below what it traded at 12 months before.

Gilbertson said the beginning of the year was also marred by civil unrest in Mozambique following the disputed general election, and the surprise implementation of the 15% export duty on emeralds in Zambia, a matter since resolved.

At Kagem in Zambia, the 15% duty reinstatement in January 2025 was revoked within months, enabling Zambian emeralds to compete globally again.