Gemfields PLC (LON:GEM) reported an “excellent” set of interim results, as it swung to a pretax profit of US$15.5 million compared with a loss of US$5.8 million a year earlier.
Revenues for the six months to end December 2010 from rough and finished emerald sales rose to US$29.05 million from US$12.06 million.
Cash in the bank as at the end of the period under review was US$ 15.51 million, up from US$7.68 million at the previous interim stage.
All bank loans and leases are repaid, and the group is debt free.
Chief executive Ian Harebottle said: “Gemfields has enjoyed an excellent six month period in which our output from the Kagem mine exceeded the entire prior year's production. In addition, we are seeing a significant increase in global demand for Gemfields' ability to provide a consistent supply of well graded and ethically sourced emeralds, as is clearly demonstrated by the record sales of USD 19.6 million achieved at the December 2010 auction.
“In line with our ongoing inventory and market building initiatives, we do not intend to host a further high grade auction in the coming half year, meaning that revenues during the second half will be derived ostensibly from the upcoming lower grade auction on 10-14 March 2011 (in Jaipur, India)."