Gemfields projects half-year loss as production challenges hit revenue

Gemfields Group Limited expects a net loss after tax of $24.6 million for the six months ended 30 June 2025, a stark contrast to the $13.7 million profit reported in H1 2024. This downturn is attributed to challenging gemstone production at both Montepuez Ruby Mining (MRM) and Kagem Mining, resulting in fewer premium carats for auction and lower total auction revenues of $60.0 million compared to the prior year.

MRM experienced a decrease in premium ruby production, while Kagem halted mining operations until May 2025, focusing on wash plant operations before reopening two emerald production points. The company successfully completed a $30.0 million Rights Issue and, post-period, sold its interest in Fabergé Limited for $50.0 million, improving liquidity.

Loss per share is projected at $c 1.7, and headline loss per share at $c 1.5. The company highlighted disciplined cost control in mitigating the impact of lower revenues and anticipates positive impacts from the commissioning of MRM’s second processing plant (PP2) in the final quarter of the year.