The company’s revenue dipped to $94 million in the six month period ended December 31, 2015 compared to $103.4 million over the same period a year prior. EBIDTA fell from $61.7 million to $35.6 million, and net profit also declined, falling to $8.2 million compared to $23.2 million a year previously.
Production at the company’s 75-percent owned emerald and beryl-producing Kagem Mining Limited in Zambia, increased to 15.7 million carats compared to 12.1 million carats in the prior year. The average grade also improved significantly, up to 254 carats per ton from 202 carats per ton in 2014. Gemfields estimates that the approximately 1.8 billion carats of emerald and beryl reserves at the mine will give it an approximately 25-year lifetime.
The company’s 75-percent owned Montepuez Ruby Mining Limitada in Mozambique saw production fall to 2.1 million carats from 6.3 million carats in 2014. Gemfields also announced that average grade dropped to 15 carats per ton from 37 carats per ton in 2014. The company said that production was concentrated on lower grade but significantly higher value alluvial ore resources.
Gemfield’s wholly-owned Fabergé Ltd saw the value of realized sales in the period increase by 70 percent, while losses were reduced by 21 percent.
The company is expected to complete the acquisition of a controlling interest in the Coscuez Emerald Mine in Boyacá department, Colombia, and will continue with exploration and development.
Gemfields estimates that its production forecast for 2016 will be 25 million to 30 million carats of rough emerald and beryl, and 8 million carats of ruby and corundum.
“The first six months of the financial year has seen steady demand for our emeralds and rubies being well supported by Fabergé’s role as a change agent within the luxury sector, the very positive production results delivered at our mining operations in Zambia and Mozambique, and the ongoing progress of our numerous expansion initiatives,” said Gemfields CEO Ian Harebottle.
“The three auctions hosted so far this financial year, two emerald (one higher quality and one lower quality) and one ruby (mixed quality), have yielded aggregate revenues of US$82.7 million – an excellent result in its own right, but even more so when compared to some of the challenges currently being experienced across the broader resource and luxury sectors.”