LONDON: Gemfields posts net after-tax profits of USD8.2 million for the six months to the end of December – down from USD23.2 million last time.
Revenue fell to USD94.0 million from USD103.4 million) and EBITDA fell to USD35.6 million (USD61.7 million) with the change being largely attributable to a more equally planned auction mix between the first and second halves of the 2016 financial year when compared to the 2015 financial year wherein a significant part of the revenue (and margin) was achieved in the first half.
Chief executive Ian Harebottle said: “With financial year 2016 well set to be a year of two halves, as compared to the considerable first half bias seen in the financial year 2015, I am pleased to report on another strong set of interim results provided by our Gemfields team and supported by revenues of US$94 million and EBITDA of US$35.6 million.
“The first six months of the financial year has seen steady demand for our emeralds and rubies being well supported by Fabergé’s role as a change agent within the luxury sector, the very positive production results delivered at our mining operations in Zambia and Mozambique, and the ongoing progress of our numerous expansion initiatives.
“The three auctions hosted so far this financial year, two emerald (one higher quality and one lower quality) and one ruby (mixed quality), have yielded aggregate revenues of US$82.7 million – an excellent result in its own right, but even more so when compared to some of the challenges currently being experienced across the broader resource and luxury sectors.
“Our Kagem emerald mine continues to deliver and deservedly maintains its reputation as the single largest producing emerald mine in the world, having produced 15.7 million carats of emerald and beryl, a 30% increase on the comparable period, while constantly delivering improved efficiencies and lower unit costs.
“At Montepuez, production of 2.1 million carats of ruby and corundum was down from 6.3 million in the comparable period in 2014. However, this deliberate shift in focus has resulted in a marked increase in the volume of higher value rubies produced. Our current focus on mining the lower grade alluvial resources is soon to be supplemented by a planned shift in mining operations to areas of the already exposed higher grade, lower value, ore over the coming months.
“Fabergé’s performance has also been positive, with increased sales and reduced losses being recorded during the first half. “The company is pleased to maintain its production target for the 2016 financial year of 25 to 30 million carats for rough emerald and beryl and 8 million carats for rough ruby and corundum and remains confident in the integrity of the coloured gemstone sector as we look forward to hosting at least three further auctions during the second half of this financial year.”
