Share

Gemfields swings to profit

Britain - Precious stones miner Gemfields swung to a full-year profit as revenue from the sale of emeralds and rubies more than tripled.

The company said it targeted producing 25-30 million carats of emeralds and beryls in the current financial year.

Gemfields, which currently mines emeralds in Zambia and rubies in Mozambique, said on Monday it would look for "gemstone opportunities" in Colombia and across Africa. It said last week it would hunt for sapphires in Sri Lanka.

Gemfields, which also owns luxury jewellery retailer Faberge, produces about a fifth of the world's rough emeralds.

The company, through aggressive marketing and expansion, is trying to create a stable market for coloured stones - the same way Anglo American's De Beers has championed diamonds from London's Bond Street to China.

Gemfields' shares rose as much as 7% after the company reported a pretax profit of $36.3 million for the year ended June 30. It had posted a pretax loss of $20.1m a year earlier.

Despite lower production and lower grades, the London-listed miner's revenue jumped to $160.1m from $48.4m a year earlier. Revenue from its first ruby auction this year generated about $33.5m.

Production fell by about a third to 20.2 million carats of emeralds and beryls.

Chief executive Ian Harebottle said the company kept a year's supply of gemstones as stockpile, which helped offset lower grades and lower production.

He said there was increased demand in the United States and Europe, while demand from India was stable.

"If you look at Indian weddings on the media, you will see more and more emeralds not just on the ladies on the front covers but the men as well," Harebottle said.

Gemfields also said it planned to produce about 8 million carats of rubies and corundums in the financial year.

Shares in the company were up 5.6% at 51.75 pence on the London Stock Exchange at 12:27 GMT.


We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent-ruolie
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders