29th Sep 2022 08:16
(Alliance News) - Gemfields Group Ltd on Thursday reported its interim profit more than doubled in the first half of 2022, due to record-breaking auction results.
The London-headquartered gemstones supplier multiplied its pretax profit to USD84.8 million for the first six months to June 30 from USD38.0 million in the prior year.
Revenue doubled to USD193.2 million from USD97.2 million following three auctions held in the first half.
Gemfields' auction revenue stood at USD181 million, a new record for a six-month period. The first-half record of USD93 million was set in 2018.
Kagem Kagem Mining Ltd generated auction revenue of USD85.2 million, up sharply from USD31.2 million from one commercial-quality auction held during March and April, and a higher-quality auction held in May.
Montepuez Ruby Mining Ltda's mixed-quality ruby auction, held as seven sequential mini-auctions in Bangkok during May and June, delivered all-time high auction revenue for any Gemfields auction at USD95.6 million.
Gemfields declared an interim dividend of 1.3 US cents. It made its first payout of 1.7 cents in some 17 years for 2021.
"It is pleasing to report that the first half of 2022 has seen Gemfields Group Ltd continue its robust upward trajectory from 2021, with record-breaking auction revenues and an all-time high in terms of the cash position," said Gemfields Chair Martin Tolcher.
As at June 30, the group was in a net cash position of USD81.8 million, up from USD63.0 million as at December 31, and held a gross cash balance of USD111.5 million, higher than USD97.2 million.
Gemfields said it continued to welcome the increasing scrutiny of its coloured gemstone supply chain.
"A number of independent audits commenced during the period as major brands familiarise themselves with our operations," it said.
In its outlook, Gemfields said the current buoyant coloured gemstone market, alongside the encouraging production at both Kagem and MRM, mean that it remains optimistic for the second half.
Gemfields shares were up 2.8% at 18.50 pence in London early Thursday. They were untraded at ZAR3.42 in Johannesburg.
By Artwell Dlamini; [email protected]
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