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HomeMiningGEMFIELDS ANTICIPATES MORE THAN 50% INCREASE IN NET PROFIT

GEMFIELDS ANTICIPATES MORE THAN 50% INCREASE IN NET PROFIT

(Copperbelt Katanga News) Gemfields believes it is reasonably certain that its net profit after tax will be US$56.7 million for the six months ending 30 June 2022, comparative to a six-month period of US$23.8 million.

Gemfields’ two key operating assets, MRM and Kagem, generated revenues of US$95.6 million and US$85.2 million respectively during the six-month period to 30 June 2021. 2022 saw the group return to its normal auction schedule of two emerald auctions and one ruby auction in the first half of the year

Following on from the strong auction results in the second half of 2021, the auctions held in the first half of 2022 saw a continuation of the robust demand for coloured gemstones with record auction revenues and per carat prices being realised. Fabergé recorded revenues of US$9.5 million driven by stronger wholesale sales and the sale of the Fabergé X Games of Thrones object egg for US$2.2 million.

A review of Gemfields’ shareholding in Sedibelo Resources – previously known as Sedibelo Platinum Mines – has resulted in a fair value write down of US$4.2 million to US$33.0 million. The write-down of the asset reflects the uncertainty in the market putting downward pressure on the enterprise values of Sedibelo and its peer group.

Gemfields has also announced the results of an auction of predominantly commercial-quality sapphire, corundum, and low-quality ruby. The gemstones were extracted by Montepuez Ruby Mining in Mozambique which is 75% owned by Gemfields and 25% by Mwiriti Limitada.

The auction saw 29 companies placing bids, generating revenues of US$4.2 million with an overall average sales price of US$0.23 per carat. The auction saw 100% of both the number of offered carats and the number of lots being sold.

“The buoyant conditions prevailing in the coloured gemstone market made this an excellent time to sell several years of accumulated MRM commercial-quality inventory. We thank and congratulate the Government of Mozambique and our partners at Mwiriti – both of whom attended the auction – on what are very healthy results for material of this quality.” commented Adrian Banks, Gemfields’ Managing Director of Product & Sales.

The company stated that the proceeds of the auction will be fully repatriated to MRM in Mozambique, with all royalties due to the Government of the Republic of Mozambique being paid on the full sales prices achieved at the auction.

Source: miningreview.com

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