Gemfields' earnings impacted by limited auctions, lower output in 2020
London-listed Gemfields has advised in a market update that its 75%-owned Montepuez ruby mine, in Mozambique, produced 1.2-million carats in 2020, while its 75%-owned Kagem emerald mine, in Zambia, produced 9.3-million carats.
Gemfields had to suspend much of its mining and processing activity as of March 30, 2020, and throughout the year, as a result of Covid-19 restrictions and impacts.
The Kagem mine had produced 42-million carats in 2019, while the Montepuez mine had produced 2.2-million carats in 2019.
The number of pieces sold through Gemfields’ luxury brand Fabergé declined to 1 686 in 2020, compared with 2 324 pieces sold in 2019.
As at December 31, Gemfields had cash and cash equivalents on hand of $43.9-million, while it had net debt of $12.6-million.
The net debt position excludes the outstanding balance of auction receivables of $8.9-million as at December 31.
The company derived Kagem emerald auction revenue of $22.4-million in total, while no ruby auctions were held.
This compares to auction revenue of $200-million generated in 2019.
Gemfields had hosted a series of five small and sequential emerald auctions in November and December last year to address market demand for specific grades.
Gemfields' typical auction schedule includes five to six auctions a year – two for mixed-quality rubies and three to four for emeralds (split between higher quality and commercial quality).
The miner on November 10 reiterated that its auctions schedule for the year had been severely impacted on by the many travel, quarantine and congregating restrictions put in place to mitigate Covid-19 contagion.
Gemfields hoped that mining operations would resume by March this year, subject to market conditions and Covid-19 developments.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
For over 60 years, VEGA has provided industry-leading products for the measurement of level, density, weight and pressure. As the inventor of the...
VISIT SHOWROOM
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
