Gemfields, the British gemstone miner, reported near-record revenues of $262m for FY2023, despite lowered production of both emeralds and rubies, and the cancellation of an emerald auction.
Revenue from Kagem, the Zambian emerald mine fell 40 per cent to $89.9m. Earnings at the Montepuez ruby mine, in Mozambique, fell 9 per cent $151.4m. Gemfields holds a 75 per cent stake in both mines. Kagem is believed to be the world’s single largest producing emerald mine.
Overall revenue was down from a record $341m in FY2022. Gemfields blamed the cancellation of a higher-quality emerald auction scheduled for November 2023 – one of six every year – as well as a reduction in the number of carats sold.
The company said it raised a total of more than $2bn from its ruby and emerald auctions since it was founded in 2005.
“Strong revenues are being challenged by ongoing inflationary pressures,” the company said in its Annual Report 2023.
“Although global commodity prices have shown a slight decline in late 2023, concerns about high interest rates and geopolitical tensions persist worldwide, contributing to higher costs.
“As a result, the Group’s operating cost base remains significantly elevated. However, the group is actively implementing cost optimisation measures aimed at containing expenses without adversely affecting production.
“Despite these challenges, we maintain confidence in our business model and our capacity to address obstacles as they emerge.”
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