Gemfields, a prominent miner of colored gemstones, announced a substantial 86% decrease in pre-tax profit for the fiscal year 2023. This downturn, disclosed on Monday, was attributed in part to the cancellation of a high-quality emerald auction in November, alongside a reduction in the volume of carats sold and a write-down in its platinum group metals investments.
Headquartered in London, the company witnessed a notable 23% decline in revenue, plummeting from $341.1 million to $262 million. Furthermore, it reported a loss after tax of $2.8 million, a stark contrast from the $74.3 million profit documented in 2022.
The estimated value of Gemfields’ investments underwent a downward revision to $4 million, marking a substantial decrease of $28 million from its 2022 valuation.
Gemfields underscored that inflationary pressures have been exerting adverse effects on its revenues, with operating expenses remaining elevated.
Despite a marginal dip in global commodity prices towards the close of 2023, the company expressed ongoing concerns regarding heightened interest rates and geopolitical tensions worldwide. These factors have contributed to escalated costs, according to Gemfields.
In response to these challenges, the miner opted to reduce its final dividend to 0.857 US cents from 4.125 US cents, drawing the funds from its income reserves.
Chief Executive Officer Sean Gilbertson remarked on the company’s performance in 2023, acknowledging both achievements and hurdles. He stated, “Gemfields had a year of both achievements and challenges in 2023. The group recorded its second-highest annual revenues [the highest was in 2022] and saw healthy prices paid at our auctions of rough emeralds and rubies.”
