Gemfields’ Revenue, Profit Slide in First Half

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Gemfields

Gemfields plc reported that its revenue fell 39 percent year on year to $27.7 million during the six months that ended on December 31, 2012. The company attributed the decline to the fact that it held only one auction during the period compared with two auctions held in the first half of the previous year. Net profit slid 78 percent to $4.7 million.

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Gemfields’ rough emerald tender that took place in November in Singapore achieved $26.8 million and was 84 percent sold by lot. The company reported that a total of 930,000 carats sold for an average of $29.71 per carat. Thirty-seven companies from Germany, India, Israel and the U.S. took part in that sale. Two auctions of rough emerald and beryl and a ruby auction are scheduled to take place in the second half,  beginning with an emerald caution in Jaipur this month.

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The company noted that it produced 14.5 million carats of emerald and beryl, mainly of higher-grades from its Kagem mine in Zambia during the period.

“The past six months has been a very busy period for Gemfields. While the timing of our auctions this year has seen lower first half revenue, the three auctions lined up for the second half are expected to balance out the financial year revenue,” said Gemfields’ CEO, Ian Harebottle. “On an operational level we have managed to deliver increased carat production, lowered unit costs and continued our strong safety record.”

During the period, Gemfields completed its acquisition of Faberge and also announced that Mila Kunis agreed to become its global brand ambassador and the face of its rare colored gemstones campaign. The company also acquired a 75 percent stake in a second substantial ruby deposit in the Montepeux district of the Cabo Deglado province of Mozambique where it has commenced bulk sampling.

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