Gemfields’ two key operating assets, the Montepuez ruby mine, in Mozambique, and the Kagem mine, in Zambia, generated revenues of $58.9-million and $31.2-million, respectively, during the period.
JSE-listed Gemfields expects to report a net profit after tax of $23.8-million for the six months to June 30, compared with the $56.7-million net loss after tax reported for the comparative six-month period in 2020.
In rand terms, the net profit after tax is expected to be R346-million.
Earnings a share are expected to be $0.02 or R0.24.
Gemfields’ two key operating assets, the Montepuez ruby mine, in Mozambique, and the Kagem mine, in Zambia, generated revenues of $58.9-million and $31.2-million, respectively, during the period.
Gemfields reiterates in a trading statement that its 2020 auction schedule was severely hampered by the many travels, quarantine, and congregating restrictions put in place internationally to mitigate the Covid-19 contagion.
Also read: Mozambique – Fura Mining holds ruby auctions in India and Thailand
Therefore, it had to adapt and find alternative ways of hosting gemstone auctions.
Gemfields notes that, after the success of its inaugural series of smaller, multi-city, online-based auctions for high-quality emeralds in November and December 2020, it continued with the same format for its auctions of emeralds and rubies during the period.
Fabergé recorded revenues of $4.9-million, compared with $2.5-million in the previous six months.
The increase in revenue is primarily owing to the opening up of key countries for Fabergé after the Covid-19 restrictions in 2020 which hampered Fabergé’s ability to deliver sales during various national lockdowns, Gemfields notes.
A review of Gemfields’ shareholding in Sedibelo Platinum Mines has resulted in a fair value write-up of $7.7-million to $37.3-million.
Headline earnings a share, which includes Sedibelo’s fair value gain, are expected to be $0.02 for the period or R0.24.
The company’s weighted average shares in issue during the period were 1.2-billion.
Gemfields expects to release its results for the period on or about September 23.
