Gemfields more than doubles its profit in six months ending 30 June 2022

Gemfields is certain that its net profit after tax will be USD 56.7 million for the six months ending 30 June 2022 (comparative six-month period: USD 23.8 million). In ZAR terms, the net profit after tax isnexpected to be ZAR 864 million (comparative period: ZAR 346 million).

Gemfields’ two key operating assets, MRM and Kagem, generated revenues of USD 95.6 million and USD 85.2 million respectively during the six-month period to 30 June 2021 (comparative period: MRM – USD 58.9 million; Kagem – USD 31.2 million). 2022 saw the Group return to its normal auction schedule of two emerald auctions and one ruby auction in the first half of the year.

Following on from the strong auction results in the second half of 2021, the auctions held in the first half of 2022 saw a continuation of the robust demand for coloured gemstones with record auction revenues and per carat prices being realised.

Fabergé recorded revenues of USD 9.5 million (comparative period: USD 4.9 million) driven by stronger wholesale sales and the sale of the Fabergé X Games of Thrones objet egg for USD 2.2 million. A review of Gemfields’ shareholding in Sedibelo Resources Limited – previously known as Sedibelo Platinum Mines Ltd – (“Sedibelo”) has resulted in a fair value write down of USD 4.2 million to USD 33.0 million. The write down of the asset reflects the uncertainty in the market putting downward pressure on the enterprise values of Sedibelo and its peer group.

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