Gemfields expects to swing to interim loss

This compares with a profit after tax of $12.4-million, or R177-million, posted in the six months ended June 30, 2019.

The company expects its loss a share to be $0.04, or R0.74, compared with the earnings a share of $0.01, or R0.11, reported for the prior comparable period.

The gemstone miner says its 2020 auction schedule has been severely impacted by the many travel, quarantine and congregating restrictions put in place to mitigate against the spread of Covid-19.

The company had only been able to host one auction in the period under review, which yielded $11.5-million from the sale of commercial quality emeralds. Auctions that were scheduled for May, June and August had to be cancelled.

During the prior comparable six months of last year, Gemfields reported sales revenues of $50-million and $33-million, respectively, from the Montepuez ruby mine, in Mozambique, and the Kagem emerald mine, in Zambia.

Gemfields remains unable to provide guidance as to when it might be able to host further gemstone auctions, or generate meaningful revenue from gemstone sales.

In addition to lower sales in the first half of this year, Gemfields’ financial performance was impacted by an impairment charge recognised against an intangible asset of its subsidiary, Fabergé, while a review of Gemfields’ shareholding in Sedibelo Platinum Mines had resulted in a fair value writedown of $12.5-million, to $45-million.

The company will release its results for the six months ended June 30 on September 18.