Zambia and Madagascar-focused coloured gemstone producer Gemfields (LON:GEM) delivered an eightfold increase in profits and more than doubled its revenues during the year to June 30.
Revenue from sales of the firm’s emerald and beryl gems increased to US$40.2 million from US$19.9 million in 2010, while profit after tax came in at US$21.4 million (2010: US$2.6 million), driven by record annual production of 33 million carats (2010: 17.4 million carats).
The estimated cost of Gemfields’ cost of emerald inventory was slightly greater at US$18.7 million, compared with US$16.6 million in 2010. Meanwhile, the average monthly operating costs at the firm’s Kagem mine were contained at approximately US$1.1 million.
Since the end of June, Gemfields said it completed a successful rough emerald auction that yielded record sales of US$31.6 million. The firm has also recently begun various expansion, exploration and other growth projects within its Zambian and Madagascan licence areas.
“The past financial year has been an outstanding one for Gemfields,” said Ian Harebottle. “We have doubled revenues, improved our profit eightfold and, following our record rough emerald auction in July, we have started the new financial year strongly. Production is up, costs are well contained and increasing demand from both the trade and consumer markets alike confirms the success of our various marketing and promotional efforts. We look forward to the prospect of continued growth and expansion throughout the coming year.”