Gemfields flags 2025 loss amid delays, weak prices

Coloured precious stones miner Gemfields (LSE: GEM; JSE: GML) warned on Tuesday it expects to post a loss for its 2025 financial year as weaker gemstone prices, project delays and operational disruptions weigh on performance.

The company guided for a loss per share of 2.6¢ for the year ended December, narrowing from 7¢ cents in 2024, while headline loss per share is estimated at 1.3¢ versus 2.1¢ previously, as interruptions at its Montepuez ruby mine in Mozambique and Kagem emerald mine in Zambia reduced output and cash generation.

“It has been a difficult year,” CEO Sean Gilbertson said in the statement. Delays to Montepuez’s second processing plant, illegal mining and grade volatility curtailed premium ruby production and disrupted auction timing, he added. 

The update underscores ongoing pressure on coloured gemstone producers as volatile pricing, operational risks and geopolitical uncertainty cloud earnings visibility, even as selective strength emerges for higher-quality stones.

Mixed auctions

Shares initially rose on Tuesday before falling 2.5% to 4.8 pence apiece by 2 p.m. in London, valuing the company at £84.9 million ($114 million).

Gemfields said the commissioning delays to Montepuez’s second processing plant will extend well into the first half of 2026 despite rubies being produced since September, limiting near-term recovery in volumes.

Auction performance was mixed, with seven auctions generating $129 million in 2025, down 34% from $195.9 million a year earlier, though the company noted improving prices for higher-quality emeralds and rubies.

Geopolitics weigh

The company also flagged rising geopolitical risks, saying escalating conflict in the Middle East has added uncertainty to global energy markets and could affect operating costs, though impacts remain unclear.

Gilbertson said reducing debt remains a priority after a $30-million rights offer and the $50-million sale of the Fabergé brand, with management focused on strengthening the balance sheet and preserving flexibility for future capital allocation.

Gemfields plans to release full annual results on March 26.