Gemfields records strong six-month performance

16th September 2021 By: Tasneem Bulbulia - Creamer Media Reporter

JSE-listed Gemfields expects to report a net profit after tax of $23.8-million for the six months to June 30, compared with the $56.7-million net loss after tax reported for the comparative six-month period in 2020.

In rand terms, the net profit after tax is expected to be R346-million.

Earnings a share are expected to be $0.02 or R0.24.

Gemfields’ two key operating assets, the Montepuez ruby mine, in Mozambique, and the Kagem mine, in Zambia, generated revenues of $58.9-million and $31.2-million, respectively, during the period.

Gemfields reiterates in a trading statement that its 2020 auction schedule was severely hampered by the many travel, quarantine and congregating restrictions put in place internationally to mitigate the Covid-19 contagion.

Therefore, it had to adapt and find alternative ways of hosting gemstone auctions.

Gemfields notes that, after the success of its inaugural series of smaller, multi-city, online-based auctions for high-quality emeralds in November and December 2020, it continued with the same format for its auctions of emeralds and rubies during the period.

Fabergé recorded revenues of $4.9-million, compared with $2.5-million in the previous six months.

The increase in revenue is primarily owing to the opening up of key countries for Fabergé after the Covid-19 restrictions in 2020 which hampered Fabergé’s ability to deliver sales during various national lockdowns, Gemfields notes.

A review of Gemfields’ shareholding in Sedibelo Platinum Mines has resulted in a fair value write up of $7.7-million to $37.3-million.

Headline earnings a share, which includes Sedibelo’s fair value gain, are expected to be $0.02 for the period, or R0.24.

The company’s weighted average shares in issue during the period were 1.2-billion.

Gemfields expects to release its results for the period on or about September 23.