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LONDON - Gemfields Group Limited (JSE:GML | AIM:GEM) reported a net loss of $24.6 million for the six months ended June 30, 2025, compared to a net profit of $13.7 million in the same period last year, according to a trading statement released Tuesday.
The colored gemstone producer’s revenue fell significantly to $60 million in the first half, with its Montepuez Ruby Mining (MRM) operation in Mozambique generating $38.9 million and Kagem Mining in Zambia contributing $21.1 million. This compares to $68.7 million and $51.9 million respectively in the first half of 2024.
The company attributed the performance decline to production challenges at both mines, with MRM experiencing decreased premium ruby production and Kagem having suspended mining operations at the end of 2024. Kagem operated only its wash plant until May 2025, when two focused emerald production points were reopened.
Loss per share for the period was 1.7 US cents, compared to earnings per share of 0.6 US cents in the first half of 2024.
To address liquidity concerns, Gemfields completed a fully underwritten $30 million rights issue in June by issuing 556,203,396 new shares. After the reporting period, on August 29, the company sold its wholly owned luxury brand Fabergé Limited for $50 million, receiving $44.7 million at completion with the remaining $5 million to be paid through quarterly royalty payments starting July 2026.
"Gemfields has simplified its business, removed costs and is focused on securing profitability across the Group," said CEO Sean Gilbertson in the statement. He added that the commissioning of a second processing plant at MRM is expected to positively impact performance in the final quarter of 2025.
The company will release its full interim results on Friday, September 26.
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