Gemfields reports varied ’G-Factor’ resource revenue

Published 04/06/2025, 14:06
Gemfields reports varied ’G-Factor’ resource revenue

LONDON - Gemfields Group Limited, a major player in the colored gemstone market, has released its ’G-Factor for Natural Resources’ figures for the period ending December 31, 2024. The G-Factor represents the percentage of revenue from natural resources paid to the government of the country where the resources are extracted. For Gemfields, this pertains to their operations at the Kagem emerald mine in Zambia and the Montepuez ruby mine in Mozambique.

The company reported that the Kagem mine’s G-Factor has decreased to 9% in 2024 due to adverse market conditions for Zambian emeralds, which led to a suspension of mining operations at the end of the year. However, mining resumed in May 2025, and with market conditions improving, the company anticipates a return to its long-term average G-Factor of approximately 19%.

In contrast, the Montepuez ruby mine in Mozambique demonstrated a more robust G-Factor of 24% for the year 2024, reflecting a resilient ruby market that allowed for a substantial contribution to the Mozambican government despite challenges.

Gemfields’ CEO, Sean Gilbertson, emphasized the company’s commitment to transparency through the G-Factor, stating that it underscores the varying contributions a mining company can make under different operating conditions. He expressed hope that Gemfields’ candidness would inspire other companies to adopt the G-Factor, enhancing understanding of resource management performance among host governments and citizens.

The G-Factor is calculated using the total mineral royalties, corporation tax, dividends to the government (if applicable), and export taxes or levies paid, divided by the company’s total revenue for the relevant period. It is designed to provide insight into the financial contributions made by companies engaged in natural resource extraction to their host countries.

Gemfields’ release of its G-Factor figures aligns with its strategy to promote greater transparency and accountability within the natural resources sector. The company’s approach is seen as part of a broader effort to ensure that the wealth derived from natural resources is shared equitably with the countries that host mining operations.

This announcement is based on a press release statement from Gemfields Group Limited.

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