The coloured stones specialist Gemfields PLC (LON:GEM) said it achieved a “record operational year” with hard work at its two mines translating to financial success.
Revenues for the 12 months ended June rose 13% to US$193.1mln, generating underlying earnings of US$69.4mln (up US$5mln). Net profit almost doubled to US$23.5mln, while cash in the bank was up US$13.5mln at US$41.5mln.
Output from the company’s flagship Kagem emerald mine, in Zambia, was steady at 30mln carats, which were mined at rock handling cost of US$2.48 per tonne, down from US$2.90.
A recent resource update estimated Kagem to be host to a ‘measured, indicated and inferred’ 1.8bn carats of emerald and beryl worth a ‘net present’ US$520mln.
Gemfields’ ruby operation at Montepuez, in Mozambique, unearthed 10.3mln carats, up 1.9mln carats from a year earlier.
The grade increased to 35 carats per tonne (from 26), unit costs were marginally lower, while a maiden JORC resource statement put the indicated and inferred resource at 467mln carats.
That gives a mine life of 21 years and tells us Montepuez is worth a ‘net present’ US$996mln.
The company also owns the world-famous Fabergé jewellery brand. Its revenues increased by a third as it expanded its global footprint.
Looking at new projects, Gemfields set a drill team to work on the Dogogo South Block in Ethiopia, while it also expanded the size of its team in Colombia. Both are earlier stage emerald projects.
In Sri Lanka, Gemfields has established trading centres in the capital Colombo as well as Ratnapura, one of the country’s other major cities.
Looking ahead, chief executive Ian Harebottle said there was scope for further “price escalation”.
In the coming year Gemfields is targeting four emerald and beryl auctions and two mixed quality ruby and corundum sales.
“This financial year has seen Gemfields consolidate its position as an industry leader,” Harebottle added.