Gemfields Blames Market Conditions for $100m Loss
April 16, 25
(IDEX Online) - Gemfields, the world's largest colored gemstone miner has reported a $100.8m loss for 2024 - and announced a $30m a rights issue to help secure its future.
It suspended mining at its Kagem emerald mine in Zambia for up to six months last December. It was also forced to temporarily close its Montepuez ruby mine, in Mozambique due to civil unrest.
The UK-based miner made a comparatively small loss of $2.8m in 2023, but says market conditions in 2024 were "more challenging than we could have anticipated".
In its latest trading update Gemfields blamed the oversupply of emeralds by a Zambian competitor, lower-than-expected production of premium rubies at Montepuez and a weak gemstone market, especially in China.
"While our planning of Gemfields' growth programme did not envisage the requirement of additional funds from shareholders, the scope and scale of the difficulties we have encountered contemporaneously has unfortunately necessitated a change in approach," said CEO Sean Gilbertson.
The company will be seeking shareholder approval for a fully committed and underwritten rights issue of 556m new shares to raise approximately $30m.
Total revenue for 2024 was $213m, down 19 per cent, due to disrupted market for emeralds in H2 2024 and lower production of premium rubies.
Gemfields said construction of a second ruby processing plant in Montepuez was on track. At Kagem the only produced are by processing the pre-mined stockpile.
Pic courtesy Gemfields.