Gemfields' Revenue Drops Amid Weaker Sentiment
October 10, 24
(IDEX Online) - Gemfields reported a 16.7 per cent drop in revenue for the six months to 30 June, amid weaker sentiment in what it said was a "complex year".
The UK-based emerald and ruby miner saw half-year earnings down from $153.6m to $128m, according to its Reviewed Interim Report.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the period were down 32 per cent to $49.6m and net profit was down 24.6 per cent to $13.6m.
Sean Gilbertson, Gemfields CEO, spoke of "slightly weaker sentiment from some customers" at three auctions - two emerald, one ruby - during the first half of the year, but said the results had been "healthy" nonetheless.
"The weakness seen at our September commercial-quality emerald auction brings some uncertainty," he said.
In the unlikely event of a repeat in November, he said the company would be prepared to take "additional measures, including cost reduction measures and further financing options".
He added that the company was working through a complex year, balancing the availability of cash with major investments at its Kagem emerald mine in Zambia, the Montepuez ruby mine in Mozambique.