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The Markets
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Diamonds & gemstones

Gemfields shares slide as ruby producer's profits topple

Revenues fell at both its key mines, Kagem and MRM

Gemfields Group Ltd shares lost some lustre as it warned net profits for the half year to June dropped by more than two-thirds.

In a statement, the ruby and emerald producer said it is "reasonably certain" that its net profit after tax will be US$18.1 million for the six months ended 30 June 2023 against US$56.7 million a year ago.

Revenues fell at its key mines, Kagem and MRM, though emerald and mixed-quality ruby auctions saw robust demand for coloured gemstones while June's higher-quality emerald auction set a new record for any Kagem auction.

Fabergé revenues also fell to of US$8.4 million, while weak platinum company valuations saw a US$13.3 million write-down at Sedibelo.

Shares fell 1.5p or 10% to 13.25p.

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