Gemstone producer Gemfields has demonstrated robust financial performance during the first half of 2023.  However, CEO Sean Gilbertson cautioned on Friday that the company is unlikely to replicate last year’s standout performance owing to its recent decision to cancel the November auction.

The company withdrew the higher-quality emerald auction scheduled for November, after experiencing lower-than-planned production from the Kagem emerald mine, in Zambia. 

“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,” said Gilbertson.

Gemfields achieved a total revenue for the six months ended June 30 of $154-million, compared with R193-million a year earlier. Its earnings before interest, taxes, depreciation and amortisation (Ebitda) for the six months amounted to $73-million, down from $105-million in the corresponding period.

Gilbertson noted that Gemfields’ rough emeralds and rubies continue to be in demand after a step-change in market pricing seen across last year.

“Coloured gemstone prices continue to rise given their rarity, increasing global desirability and a market long bifurcated into two vastly different price brackets for natural and lab-grown gemstones. Gemfields is uniquely positioned to benefit from these trends and to further develop the coloured gemstone market.”

He also added that the company had started construction of the Montepuez ruby mine’s second processing plant. The plant is expected to become operational during the first half of 2025 and will be a gamechanger in terms of the miner’s ability to process our sizeable stockpile, and to bring new ruby products to market and explore more of its licence area.