Gemfields turn loss to profit in six months ending 30 June 2021
LONDON – Gemfields is reasonably certain that its net profit after tax will be USD 23.8 million for the six months ending 30 June 2021 (comparative six-month period: USD 56.7 million net loss after tax). In ZAR terms, the net profit after tax is expected to be ZAR 346 million (comparative period: ZAR 959 million net loss after tax).
Gemfields’ two key operating assets, MRM and Kagem, generated revenues of USD 58.9 million and USD 31.2 million respectively during the six-month period to 30 June 2021 (comparative period: MRM – nil; Kagem – USD 15.0 million).
Gemfields’ 2020 auction schedule was severely hampered by the many travel, quarantine and congregating restrictions put in place internationally to mitigate the Covid-19 contagion. Gemfields, therefore, had to adapt and find alternative ways of hosting gemstone auctions.
After the success of Gemfields’ inaugural series of smaller, multi-city, online-based auctions for high-quality emeralds in November and December 2020, Gemfields continued with the same format for its auctions of emeralds and rubies during the first half of 2021.
Fabergé recorded revenues of USD 4.9 million (comparative period: USD 2.5 million). The increase in revenue is primarily due to the opening up of key countries for Fabergé after the Covid-19 restrictions in 2020 which hampered Fabergé’s ability to deliver sales during various national lockdowns. A review of Gemfields’ shareholding in Sedibelo Platinum Mines has resulted in a fair value write up of USD 7.7 million to USD 37.3 million.