RUBY and emerald miner Gemfields said it would post a loss for its 2025 financial year ended December owing to subdued prices, a delay to an expansion project, and operational interruptions, including from illegal mining.
“It has been a difficult year,” said Sean Gilbertson, CEO of Gemfields in commentary to a trading statement published on Tuesday. A headline per share loss of 21.6 South African cents was expected. This compares to a 39.1c per share loss in the 2024 financial year.
Shares in Gemfields, which mines rubies from the Montepuez mine in Mozambique and emeralds from Zambia’s Kagem mine, improved 3% in early Johannesburg trade. The stock is one-fifth lower in the last 12 months.
Reducing debt was a key target for this year, said Gilbertson. “The need to further strengthen our balance sheet means that deleveraging is the primary focus of our capital discipline in the short term, with a view to providing us with the opportunity to broaden our capital allocation options in the medium term,” he said.
The group has already been recapitalised this year following a $30m rights offer, completed in the first half, and the recent agreement to sell its Fabergé brand for $50m.
Gemfields has been blighted by an unusual amount of mishap. In addition to illegal mining, especially at Montepuez, the company has been unable to commission a second processing unit on time which would have lifted volumes and lowered unit costs.
The attack on Iran from joint Israel and US military operations is also expected to interrupt precious gem trading activities as well as increase costs on certain inputs, such as diesel. Said Gilbertson: “The recent escalation of conflict in the Middle East adds further uncertainty to global energy markets.
“While diesel prices remain volatile, it is too early to quantify any potential cost impact on our operations; however, we continue to monitor developments closely.”
