16th Sep 2021 10:23
(Alliance News) - Gemfields shares rose on Thursday morning after the gem producer said it expects to return to the black in the first half of its financial year after overcoming Covid-19 difficulties and seeing revenue soar at both of its two key operating assets.
Shares in the company were up 4.8% to ZAR2.40 each in Johannesburg on Thursday morning, and were 1.3% lower in London at 12.48 pence.
Gemfields expects to swing to a profit after tax of USD23.8 million in the first half of 2021, compared to a loss of USD56.7 million last year. Earnings per share are seen at 2 US cents, swinging from a loss of 4 cents.
Gemfields' two key operating assets, Montepuez Ruby Mining in Mozambique and Kagem in Zambia, generated revenue of USD58.9 million and USD 31.2 million, respectively. Last year MRM didn't produce any revenue while Kagem brought in USD15.0 million.
"Gemfields' 2020 auction schedule was severely hampered by the many travel, quarantine and congregating restrictions put in place internationally to mitigate the Covid-19 contagion. Gemfields, therefore, had to adapt and find alternative ways of hosting gemstone auctions. After the success of Gemfields' inaugural series of smaller, multi- city, online-based auctions for high-quality emeralds in November and December 2020, Gemfields continued with the same format for its auctions of emeralds and rubies during the first half of 2021," Gemfields said.
By Greg Roxburgh; [email protected]
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