Gemfields, a gemstone miner, reported total auction revenues of $121 million for the first half of the year ending June 30. The company attributed this strong figure to the high demand for rough emeralds and rubies.
In its interim results, Gemfields highlighted significant progress at its Montepuez ruby mine in Mozambique. The company, which owns 75% of the construction of a second processing plant, remains on budget and is scheduled for completion by mid-next year.
Similarly, at the 75%-owned Kagem emerald mine in Zambia, the wash plant upgrade is now complete. The upgraded plant is operating at an increased processing rate, boosting overall productivity.
Gemfields reported a net debt of $44.4 million for the six-month period. This figure does not include auction receivables of $65.5 million. The company attributed the debt to ongoing investments in its capital expenditure plan, funded through a combination of cash reserves and increased debt.
Additionally, Gemfields has returned $10 million to shareholders this year, reflecting the strong results achieved in 2023.
Looking ahead, Gemfields plans to hold a commercial-quality emerald auction in the third quarter. This will be followed by a higher-quality emerald auction and a mixed-quality ruby auction in the fourth quarter. These upcoming auctions are expected to further bolster the company’s revenue.
The gemstone market continues to show strong demand, particularly for rough emeralds and rubies. This trend has significantly benefited Gemfields, allowing the company to maintain a positive financial outlook despite the challenges posed by increased debt.
Gemfields remains committed to expanding its operations and increasing its processing capacity. The completion of the new processing plant in Mozambique and the upgraded wash plant in Zambia are key components of this strategy.
With strong auction revenues and considerable advancements in its mining operations, Gemfields is well-positioned for sustained growth. The company’s commitment to maintaining a strong market presence is emphasized by its focus on expanding capacity and returning value to shareholders.
Source: Mining Weekly
