JSE-listed Gemfields on Monday confirmed that it had posted a $60.4-million net loss for the year ended December 31, 2018, compared with a $45.1-million profit in 2017.

As set out in a trading statement published on Friday, the group attributed the loss to impairment charges and fair value loss that eroded earnings before interest, taxes, depreciation and amortisation (Ebitda).

Excluding the impairment charges and fair value losses, as well as dividends received and costs related to a settlement with law firm Leigh Day, the group’s profit for the year was $18-million.

Gemfields on Monday reported a headline loss a share of $0.03 for 2018, compared with a headline loss a share of $0.06 in 2017. This excludes the impairment charges recognised for 2018.

It further reported a loss a share of $0.05 for 2018, compared with earnings a share of $0.04 in 2017.

Normalised earnings a share for the year, excluding impairments and extraordinary legal claims and fees, are $0.01.

During the full-year period, Gemfields achieved revenues of $206.1-million, following four high-quality (HQ) and commercial-quality (CQ) rough emerald and beryl auctions and two HQ and CQ rough ruby and corundum auctions.

The two ruby auctions generated $127.1-million, while the four emerald auctions earned Gemfields $60.3-million for the year.

The HQ and CQ emerald auctions realised higher average prices per carat at $65.55 and $3.54, respectively, demonstrating some green shoots of recovery in the Indian market following the recent downturn and property market slump.

The HQ auction held in Singapore in November 2018 realised the second-highest price per carat in Kagem's history of $68.03.

Gemfields is the operator and 75% owner of both the Kagem emerald mine, in Zambia, and the Montepuez ruby mine (MRM), in Mozambique.

MRM achieved record revenues during the year, with the mixed-quality auction in June 2018 having realised $71.8-million at an average price of $122.03/ct, and the November 2018 auction realising $55.3-million at an average price of $84.32/ct, as the ruby market continued to show signs of strength and stable demand.

Gemfields’ wholly-owned Faberge subsidiary generated revenues of $13.4-million, underpinned by retail sales of $4.2-million, wholesale sales of $6.8-million and $2.4-million from other channels.

Total operating costs at Faberge are at their lowest level of $9.9-million, reflecting the continued benefit of the cost optimisation and efficiencies implemented, which saw reduced labour and marketing and advertising spend, as well as the benefit of a weaker pound.

With record revenues achieved at two HQ auctions at Kagem, coupled with fairly flat costs reflecting the group's ongoing cost optimisation strategy, Ebitda was $58.9-million.