Gemfields Returns to Strong Profitability as Kagem Emerald Mine Drives Revenue Growth
Gemfields Revenue Surges 65% as Kagem Emerald Mine Boosts Production and Auction Performance
Gemfields Group Limited delivered a significantly improved operating performance in the first half of 2026, driven by strong gemstone auction results, rising production at Zambia’s Kagem Emerald Mine, and sustained global demand for high-quality coloured gemstones.
The gemstone producer, which holds a 75% stake in Kagem, reported revenue of US$106 million for the six months ended June 30, 2026, representing a 65% increase from US$64.2 million recorded during the same period in 2025.
The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) rebounded sharply to US$40.7 million, compared with a loss of US$4.9 million a year earlier.
As a result, the EBITDA margin improved from negative 8% to 38%, reflecting the strength of the group’s core operations.
According to Gemfields, the improved performance was largely driven by three successful gemstone auctions held in February, May and June, which generated combined revenue of approximately US$102.8 million.
Despite the strong operational results, the group reported a loss after tax of US$98.5 million, compared with a profit of US$24.6 million in the first half of 2025.
The loss was primarily attributable to a substantial non-cash impairment charge of US$125.2 million related to Montepuez Ruby Mining (MRM) in Mozambique.
Kagem Delivers Strong Production Growth
Kagem continued to be one of the group’s strongest-performing assets during the reporting period.
Revenue generated by the Zambian emerald mine increased to US$26.7 million, up from US$21.1 million in the corresponding period of 2025, supported by stronger gemstone production and continued market demand for premium-quality emeralds.
Production of premium emeralds rose by an impressive 300%, reaching 93,185 carats compared with 23,288 carats during the first half of the previous year.
Overall emerald and beryl production also recorded substantial growth, increasing by 60% to 17.57 million carats from approximately 10.95 million carats.
The improvement was supported by expanded mining activities following the resumption of full-scale operations in 2025.
The F10 sector of the Chama pit remained the principal source of emerald production, delivering significantly higher volumes of premium-quality gemstones and contributing strongly to operational performance.
Kagem’s May emerald auction in Bangkok delivered particularly encouraging results.
The company offered 185,135 carats of higher-quality emeralds for sale and successfully sold 183,385 carats, representing a remarkable 99% sales rate.
The auction generated US$26.7 million in revenue at an average selling price of US$146.08 per carat, with 36 of the 37 lots offered attracting buyers.
Momentum continued beyond the reporting period, with Kagem’s September commercial-quality emerald auction generating an additional US$29.6 million, highlighting ongoing strength in gemstone demand.
Rising Costs Offset Some Gains
While revenue and production increased significantly, Gemfields also faced rising operating costs during the period.
Mining and production costs rose to US$51.4 million, compared with US$33.8 million in the first half of 2025, reflecting increased mining activity across the group’s operations.
Total operating costs increased to US$73.3 million from US$53.5 million previously. The company attributed the higher cost base to the resumption of full mining operations at Kagem, increased fuel expenses driven by global geopolitical developments and the appreciation of the Zambian kwacha, which added pressure to operating costs.
Montepuez Remains a Key Challenge
Although Montepuez Ruby Mining generated revenue of US$76.1 million, almost double the US$38.9 million recorded in the comparable period last year, the operation remained the group’s most significant financial challenge due to the impairment charge recognised during the period.
Interim Chief Executive Officer David Lovett said Gemfields remains focused on maintaining operational discipline, strengthening financial management and delivering more consistent production outcomes across its portfolio.
Looking ahead, the company expects continued support from robust coloured gemstone demand, while ongoing improvements at Kagem and successful auction performance position the group for further operational growth despite persistent cost pressures and challenges within its ruby business.
