Gemfields Group, a leading miner and marketer of colored gemstones, has announced that it anticipates a decline in profit and revenue for the first half of the year. Despite this, the company remains optimistic about the strong demand for gemstones.
Financial Outlook
Gemfields expects its net profit after tax for the half-year to reach $18.1 million, a significant decrease from the $56.7 million recorded in the previous year. Similarly, revenue is projected to fall from $180.8 million to $145.0 million for the same period.
Robust Demand for Colored Gemstones
Despite the anticipated decline in financial performance, Gemfields highlights the positive demand for colored gemstones. In June, an auction at the Kagem mine in Zambia set a new record for any auction, demonstrating the market’s interest in high-quality emeralds.
Earnings per Share
The company expects headline earnings per share to decline from 3.7 cents to 0.8 cents compared to the previous year. However, on an adjusted basis, earnings per share are projected to be 1.9 cents, down from 4.1 cents.
Faberge Division Performance
Gemfields’ Faberge division also experienced a decrease in revenue, generating $8.4 million compared to $9.5 million due to market conditions in the luxury sector.
Gemfields plans to unveil its full interim results on September 22nd.