London-listed Gemfields says 2021 was a good year for the company, allowing the “horrors” of 2020 to be consigned to the history books.

The company has been able to allocate $20-million, or $0.017 apiece, to be distributed as a special dividend for the year ended December 31, 2021, after achieving record auction revenue and a record average price per carat.

CEO Sean Gilbertson says the company entered 2022 with optimism and healthy demand for its gemstones. The company produces emeralds from the Kagem mine, in Zambia, and rubies from the Montepuez mine, in Mozambique.

Principal operations at Kagem saw a phased resumption of operations in March 2021, after it was suspended throughout most of 2020. Production in the premium emerald category at Kagem was 230 500 ct for the year, while overall production amounted to 32-million carats.

Operations at the Montepuez mine also resumed in March 2021, and production in the premium ruby category totalled 84 000 ct for the year under review, while overall production amounted to 3.3-million carats.

The company plans to build a second treatment plant at Montepuez, which will boost output in the near future.

Gemfields posted a net profit of $64-million for the year under review, compared with a net loss of $93-million posted for 2020.

Headline earnings a share rose by 174% year-on-year to $0.05, compared with a headline loss a share of -$0.06 for 2020.

Revenue grew from $34-million in 2020 to $257-million in 2021.

Gilbertson comments that the group’s 2021 results underscore the positive step-change in both market demand for coloured gemstones and in the prices bid by clients, aided by the disruptions to gemstone supply caused by Covid-19.

“The success of our multi-city auctions, combined with the new online bidding platform, has provided greater flexibility for the group in the ever-changing circumstances we encounter. Gemfields’ teams worldwide have made notable sacrifices to safeguard the business through these unprecedented times.

“Thanks to their contributions and our stronger-than-expected earnings for the year, we are very pleased to have been able to allocate $20-million to our maiden dividend. It has been a long journey for many of our shareholders and, as we mark this long-awaited and significant achievement for the group, we thank our shareholders for their loyalty and patience.”