Gemfields swings to first-half loss

(Sharecast News) - Gemfields Group slumped on Friday as it confirmed it swung to a loss in the first half, pointing to production difficulties at both of its mines.

In the six months to 30 June, the company swung to a net loss of $24.6m from a profit of $13.7m in the same period a year earlier. Revenue fell to $64.2m from $121.4m.

Chief executive Sean Gilbertson said: "This has been a challenging first half marked by gemstone production difficulties at both mines. MRM experienced lower premium ruby output while Kagem Mining (Kagem) suspended mining altogether at the end of 2024, with limited operations resuming only in May 2025.

"The beginning of the year was also marred by civil unrest in Mozambique following the disputed general election and the surprise implementation of the 15% export duty on emeralds in Zambia, a matter since resolved. These factors contributed to short-term cash flow pressures and certainly tested the team and the business.

"However, a series of difficult decisions has yielded a more streamlined and focussed organisation with, thanks to the support of our shareholders via the rights issue, a stronger balance sheet, all of which put us on a better footing for the year ahead. Significantly, our new processing plant in Mozambique produced its first rubies earlier this month and is expected to be fully operational during October."

Gemfields had already warned in a trading statement earlier in the week that it was expecting to post a loss.

At 0925 BST, the shares were down 10% at 5.50p.