Gemstone producer Gemfields has reported a sharp downturn in financial performance for the six months ended June 30, posting a net loss of $24.6-million compared with a profit of $13.7-million in the same period of 2024.

The company reported on September 26 that revenue fell to $64.2-million from $121.4-million a year earlier, reflecting weaker auction income, production setbacks and disruptions at its key mining operations in Mozambique and Zambia.

The group recorded a loss before interest, taxes, depreciation and amortisation of $4.9-million, a steep decline from the earnings before interest, taxes, depreciation and amortisation of $50.3-million in the prior comparable half-year period.

The loss from operations totalled $21.3-million against a profit of $27.4-million in the comparable period. The loss attributable to owners of the parent was $20.5-million, compared with a profit of $7.4-million a year earlier.

Gemfields reported a loss a share of $0.017, compared with earnings a share of $0.006 in the prior period. It also posted a headline loss a share of $0.015, down from headline earnings a share of $0.006, while its adjusted headline loss a share was also $0.015, compared with adjusted headline earnings a share of $0.010 previously.

No dividend was declared for the period, against the $0.0086 per share paid in the first half of 2024.

Net debt increased to $61.2-million at the end of June, compared with $44.4-million as at June 30, 2024. The group’s net asset value fell to $357.2-million from $435.3-million a year earlier.

Gemfields CEO Sean Gilbertson said the results reflected operational and external challenges.

“This has been a challenging first half marked by gemstone production difficulties at both mines. Montepuez Ruby Mining experienced lower premium ruby output, while Kagem suspended mining altogether at the end of 2024, with limited operations resuming only in May 2025.

“The beginning of the year was also marred by civil unrest in Mozambique following the disputed general election and the surprise implementation of the 15% export duty on emeralds in Zambia, a matter since resolved. These factors contributed to short-term cash flow pressures and certainly tested the team and the business,” he said.

He added that the company had undertaken “a series of difficult decisions” that resulted in a more streamlined structure and, with support from shareholders through a rights issue, a stronger balance sheet.

“Significantly, our new processing plant in Mozambique produced its first rubies earlier this month and is expected to be fully operational during October,” Gilbertson said.