Gemfields revenue drops 32% after ‘difficult’ year

Coloured precious stones miner Gemfields (LSE: GEM; JSE: GML) said 2025 revenue fell 32% to $135.1 million as operational disruptions and weak demand for rubies and emeralds weighed on performance.

Earnings before interest, taxes, depreciation and amortization dropped 85% to $6.2 million from $43.2 million, reflecting reduced production, fewer auctions and softer market conditions, Gemfields said. Seven auctions generated $129 million during the year, as limited gemstone availability and uneven demand offset resilient pricing at the high end.

Operations at the Montepuez ruby mine in Mozambique were hit by persistently low recovery of premium rubies and rising illegal mining activity. Two police officers were killed in October when illegal miners stormed the site. The company also flagged delays to its new $70 million processing plant, with commissioning now expected to run well into the first half of 2026, constraining near-term output despite production beginning last September.

At the Kagem emerald mine in Zambia, Gemfields suspended mining from January to May in response to weak auction results, softer global demand — particularly in China — and oversupply from a competing Zambian producer.

Pinch point

CEO Sean Gilbertson described the year as difficult, citing disruptions at both Montepuez and Kagem that constrained production, auction frequency and cash generation. Still, top-quality ruby and emerald prices remained relatively firm, he added.

Gemfields cut group operating costs by 17% and sold the Fabergé brand for $50 million to reduce debt and support expansion projects. The company also completed a $30 million rights offer as it prioritizes strengthening its balance sheet and maintaining financial flexibility.

Rising geopolitical tensions in the Middle East have pushed up fuel costs and created supply risks, with Gemfields warning of a potential “pinch point” that could disrupt diesel-dependent operations in Mozambique and Zambia.

Possible mitigation measures include alternative supply routes, increased on-site storage and operational adjustments to limit potential interruptions, Gemfields said.