Gemfields Faces $73.5m Loss after Ruby Mine Write-Down

(IDEX Online) - Gemfields expects to report a $73.5 million net loss for the first half of 2026 after writing down the value of its Montepuez ruby mine (MRM) in Mozambique by $125.2 million.

It follows lower-than-expected recoveries of premium-grade rubies.

The impairment is a non-cash accounting charge that reflects Gemfields' revised assessment that the mine is likely to generate less value in the future than previously expected.

The company said in an update on September 25 that its expected first-half loss compares with a $20.5 million loss in the first half of 2025.

The London-based colored gemstone miner said the write-down followed a more conservative approach to forecasting future ruby grades, particularly premium material, after recoveries during the first half fell below expectations.

It said recent recoveries have shown early signs of improvement, but more production data is needed before firm conclusions can be drawn.

The company also increased the impairment recorded for 2025 from $35 million to $65 million after identifying a further $30 million adjustment. It said details of the restatement will be provided with its interim financial statements, due September 30.

Despite the problems at Montepuez, Gemfields reported substantially higher auction revenue during the first half.

Montepuez generated $76.1 million, compared with $38.9 million a year earlier, while its Kagem emerald mine in Zambia generated $26.7 million, up from $21.1 million.

Total auction revenue was $102.8 million. However, Gemfields cautioned that the comparison is distorted by the postponement of a mixed-quality ruby auction from December 2025 to February 2026.

Gemfields said management is working to improve grade performance, mine planning and operational reliability at Montepuez. Its second processing plant, PP2, has reached and sometimes exceeded its designed throughput, although commissioning and optimization work is continuing.

"The first half of 2026 was a challenging period for Gemfields, driven by lower-than-expected premium ruby recoveries at MRM, which had a significant impact on the Group's financial performance," said interim CEO David Lovett.

Pic shows rough rubies from Gemfields' Montepuez mine.