A steady increase in coloured gemstone demand is set to continue for the foreseeable future, Aim-listed Gemfields said last week as it posted higher earnings for the first half of the 2015 financial year.

The gemstone miner posted a surge in after- tax profit to $23-million for the six months ended December 31, compared with the $1.4-million reported in the six months to December 2013.

The group’s profit from operations increased from $8.2-million in the first half of the 2014 financial year to $44.8-million in the interim period under review.

Earnings before interest, taxes, depreciation and amortisation grew to $61.7-million in the six months to December 31, compared with the $18-million posted in the corresponding six months in 2013.

Further, Gemfields delivered a 57% hike in revenue, from $65.7-million, to $103.4-million in the period under review.

“Gemfields has delivered an exceptional first-half with an increase in revenues, record-breaking auction results and a significant uplift in gemstone production across each of our operations,” said CEO Ian Harebottle.

Gemfields mines emeralds and beryl at its 75%-owned Kagem mine, in Zambia; ruby and corundum at its 75%-owned Montepuez mine, in Mozambique; and amethyst at its 50%-owned Kariba Minerals mine, in Zambia.

“This solid performance comes at a time when the mining sector has faced various challenges, but I am pleased to report that demand for Gemfields’ responsibly sourced coloured gemstones and the opportunity for sustained growth remains significant,” added Harebottle.

His comments followed the achievement of Gemfields’ highest revenue generation – at $43.3-million – to date from a December ruby auction.

“With two further ruby auctions scheduled in the [current] financial year, continued organic growth at both [the] Kagem and Montepuez [operations], and a clear focus on continued acquisitions and expansion, we look forward to a strong and successful second half of this financial year,” he said.

Gemfields aimed to hold a March/April auction in Jaipur, India, for predominantly lower-quality rough rubies from Montepuez, while predominantly higher-quality rubies would be auctioned in Singapore in June.