22nd Feb 2016 09:39
LONDON (Alliance News) - Emeralds and rubies producer Gemfields PLC on Monday said its pretax profit halved and revenue dipped in the first half of its financial year, as emeralds production increased but rubies production slumped.
Gemfields said its pretax profit for the first half to the end of December was USD21.8 million, down from USD43.5 million a year earlier, mainly as a result of a shift in the timing of gem auctions for the company. In its 2015 financial year, auctions were weighted to the first half, boosting its results for the year before and creating a tough comparative.
Revenue dipped to USD94.0 million from USD103.4 million in the half, with emerald and beryl production from the Kagem mine in Zambia higher, up to 15.7 million carats from 12.1 million a year earlier, but ruby and corundum production from the Montepuez mine in Mozambique dropping to 2.1 million carats from 6.3 million a year earlier.
The group maintained its production forecasts for the full year and said it is focused on completing the acquisition of a controlling stake in the Coscuez emerald mine in Colombia.
Gemfields shares were up 3.4% to 47.05 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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