Gemfields reports second highest ever revenues despite 23% decline
Gemfields has reported a 23% decline in revenues to $262m (£207m) for the year ending 31 December 2023.
The company attributed this to fewer carats sold in the year and in part to the cancellation of a higher-quality emerald auction that was scheduled for November 2023.
Despite this, the group recorded the second highest annual revenues in Gemfields’ history.
The group’s EBITDA also dropped by 50% to $83.1m (£65.8m) and it made a loss after tax of $2.8m (£2.2m) in 2023, down by $77.1m (£61.07m) compared with the prior year profit of $74.3m (£58.5m).
This was primarily due to the unrealised fair value losses of $28.0m (£22.1m) from the group’s 6.54% equity holding in Sedibelo, as well the decrease in revenues.
Additionally, profit from operations for 2023 also decreased from $116.5m (£92.2m) to $17.4m (£13.7m).
Looking ahead the group expects that 2024 will continue to see considerable investment across its mining and development operations.
It also stated that it will continue its commitment to return capital to shareholders, with a smaller $10m (£7.9m) dividend payable in June 2024.
Sean Gilbertson, CEO of Gemfields, said: “Gemfields had a year of both achievements and challenges in 2023.
The group recorded its second highest annual revenues and saw healthy prices paid at our auctions of rough emeralds and rubies. Production of gemstones in the premium quality category has been weaker at both Kagem and Montepuez Ruby Mining (“MRM”) when compared with 2022 and resulted in one auction of higher quality emeralds being withdrawn from our schedule in November 2023, negatively affecting our results for 2023.
“2023 also saw the start of a period of considerable investment across the Group spurred by the position of financial strength prevailing at the end of 2022. We believe that the short-term impact of these investments on our financial performance and position will lead to a stronger and expanded business, particularly at MRM, where construction of a second processing plant – tripling our throughput capacity – is well underway.
Gilbertson added: “The market for coloured gemstones can and does shift from year to year. While prices for our emeralds and rubies remain healthy, they are certainly down on the remarkable figures we saw in 2022. We are convinced that we have the right strategy and will continue our efforts of raising the profile and attractiveness of coloured gemstones on a global basis.
“Our sincere thanks goes to our team members globally, to our host governments, our business partners, our customers and our shareholders for their ongoing support. 2024’s financial results will naturally be impacted by the scale of the investments we are making, but there is much to be excited about in the coming years across Gemfields’ unique business.”