Gemfields Warns of $57M Loss
Gemfields expects to suffer a loss of $56.7 million for the first half of the year amid the cancellation of most of its emerald and ruby auctions.
The loss for the six months ending June 30 compares with a profit of $12.4 million for the same period a year ago, the miner said Monday. The company was able to hold only one auction, in February, before being forced to cancel those scheduled for May, June and August due to the coronavirus pandemic.
“Gemfields’ 2020 auction schedule has been severely impacted by the many travel, quarantine and congregating restrictions put in place to mitigate the Covid-19 contagion,” it noted.
The miner also incurred an impairment charge — a devaluation of its assets — of $11.5 million on its Fabergé brand, driven by lower-than-expected revenues as a result of Covid-19, and the general downturn in the market. Gemfields is not sure when it will be able to resume normal operations.
“[We] remain unable to provide reliable guidance as to when [we] might next be able to host gemstone auctions or generate meaningful revenue from gemstone sales,” it added.
Gemfields operates the Kagem emerald mine in Zambia and the Montepuez ruby mine in Mozambique.
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- Gemfields Warns of $57M Loss