Gemfields announced a net loss after tax of US$98.5 million for the six months ended 30 June 2026, reflecting a significant increase from the US$24.6 million loss reported in the first half of 2025. The widened loss is largely due to a US$125.2 million non-cash impairment at its Montepuez Ruby Mining (MRM) operation in Mozambique.
The impairment reflects lowered expectations for premium ruby grade recoveries and ongoing difficulties in commissioning the second processing plant (PP2). Despite these setbacks, Gemfields experienced improved trading performance during the period.
Revenue rose sharply to US$106 million, up from US$64.2 million in the prior comparable period. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) turned positive at US$40.7 million, a marked improvement from a negative US$4.9 million a year earlier. This turnaround was supported by three successful auctions held during the period: a mixed-quality ruby auction in February generating US$53 million, a higher-quality emerald auction in May bringing in US$26.7 million, and the inaugural Trade Select ruby auction in June which raised US$23.1 million.
Gemfields’ net debt stood at US$44.2 million as at 30 June 2026, compared to US$39.3 million at 31 December 2025. The company has disclosed a material uncertainty regarding its ability to continue as a going concern, citing potential breaches of debt covenants expected in December 2027 and the risk of overdraft facilities becoming unavailable. These risks stem from uncertainties around future premium ruby recoveries and production performance at MRM.
To address these challenges, Gemfields is implementing mitigating actions focused on cost reductions and accelerating revenue at its Kagem emerald mine in Zambia. Operationally, Kagem delivered a strong performance with premium emerald production reaching 93,185 carats, a 300% increase year-on-year.
Conversely, MRM saw lower premium ruby recoveries and increased illegal mining activity, producing 30,408 carats in the first half of 2026, down 13% from 34,823 carats in the same period last year.
Gemfields remains committed to navigating current challenges while leveraging its auction platform and operational strengths to drive future growth.
