Precious gemstones miner Gemfields (LSE: GEM; JSE: GML) has swung to a first-half net profit after it reopened mines and demand for its emeralds and rubies surged.
The company, which returned to the London Stock Exchange’s market for juniors last year, posted a US$23.8 million net profit, which compares to a loss of US$56.7 million in the same period last year, as revenue increased 548% to US$97.2 million.
Gemfields operates the Kagem emerald mine in Zambia and the Montepuez ruby mine in Mozambique.
“We are delighted to announce our return to strong operational and financial performance after the Covid-induced horrors of 2020,” CEO Sean Gilbertson said in a press release.
Gilbertson attributed the positive results to the hard work put in by the company’s employees and said he was excited about the future.
“With the mines back in full-swing, a much-improved cash position and the step-change in market demand we’ve witnessed in our recent auctions, we are palpably excited about the remainder of 2021.”
Last month, the company posted an all-time record revenue for a commercial-quality emerald sold at auction of US$23.1 million.
Eyes on Asia
Gemfields has stepped up efforts to market its emeralds and rubies in China after a report highlighted the “huge potential” for ethically sourced gems in that market.
Top diamond miners are already directing efforts in that direction.
The Natural Diamond Council (NDC), which groups the world’s seven leading producers, launched in May its first advertising campaign targeting the Asian and U.S. markets.
NDC also inked a deal with China’s top jewellery retailer Chow Tai Fook to boost demand for mined rocks.
Be the first to comment on "Gemfields swings to profit as it reopened mines"