Difficult Year: Gemfields Revenue Down 32%

(IDEX Online) - Gemfields reported a 32% drop in FY2025 revenue after a "difficult year," with disruptions to both its emerald and ruby mining operations.

The UK-based miner said total annual revenue from continuing operations was down from $199.4 million to $135.1 million and EBITDA was down 85% from $43.2million to $6.2 million.

Ruby mining at Montepuez, in Mozambique, was hit by persistently low premium ruby recovery and increased illegal mining, Gemfields said in its full-year results published today (26 March).

Two police officers were killed after illegal miners stormed the mine last October.

In addition, Gemfields reported delays with its new $70m processing plant at the mine.

At its Kagem emerald mine, in Zambia, the company was forced to suspend mining from January to May in response to a slump in auction sales, weaker demand for gemstones generally, especially in China, and the oversupply of emeralds by a Zambian competitor.

On the plus side, Gemfields said it had cut group operating costs by 17%. It also sold the iconic Faberge brand for $50 million to reduce mounting debts and raise working capital for expansion projects.

CEO Sean Gilbertson said: "This was a difficult year, with operational disruptions at both MRM (Montepuez Ruby Mining) and Kagem constraining our premium gemstone production, auction cadence and cash generation.

"Seven auctions generated just USD 129 million, reflecting both the shortfalls in gemstone availability and bumpy market conditions, despite continued pricing resilience at the top end of the ruby and emerald quality spectrum."

He also said the situation in the Middle East had already increased costs, particularly fuel.

Pic courtesy Gemfields.