Gemfields Anticipates Weaker Financial Performance in 2023
Gemstone producer Gemfields has reported a solid financial performance in the first half of 2023, despite challenges on the horizon.
CEO Sean Gilbertson expressed caution about replicating last year’s remarkable results due to the cancellation of the November auction.
The cancellation was a result of lower-than-expected production from the Kagem emerald mine in Zambia, leading to the withdrawal of the higher-quality emerald auction scheduled for November.
Gilbertson acknowledged this setback, stating, “This is understandably disappointing, but such periods have been seen in the past, and we always wish to ensure we have an optimal offering when we bring our gemstones to auction.
Given the withdrawal of this auction, we are not presently positioned to match last year’s standout financial performance this year.”
For the first half of the year ending on June 30, Gemfields reported total revenue of $154 million, compared to $193 million in the previous year.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the same period amounted to $73 million, down from $105 million in the corresponding period.
Gilbertson highlighted the ongoing demand for Gemfields’ rough emeralds and rubies, which have experienced significant market price increases over the past year.
He explained, “Colored gemstone prices continue to rise given their rarity, increasing global desirability, and a market long divided into two significantly different price categories for natural and lab-grown gemstones.
Gemfields is uniquely positioned to benefit from these trends and further develop the colored gemstone market.”
Furthermore, Gilbertson announced the commencement of construction for the Montepuez ruby mine’s second processing plant, expected to become operational in the first half of 2025.
This development will significantly enhance Gemfields’ ability to process its substantial stockpile, introduce new ruby products to the market, and explore more of its licensed areas, marking an exciting chapter for the company’s future growth.
