Gemfields announces eight-fold profit increase

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Emerald mining company’s sales increase to £26m with costs contained.

Gemstone mining company Gemfields, based in Zambia and Madagascar, has revealed a standout increase in profits, more than doubling its revenue in the year to June 30.

“The past financial year has been an outstanding one for Gemfields,” said Ian Harebottle, chief executive of Gemfields.

“We have doubled revenues, improved our profit eightfold and, following our record rough emerald auction in July, we have started the new financial year strongly,” he added.

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Production at Gemfields is also on the increase, and Harebottle says that costs are “well contained”, with an increasing in demand from both the trade and consumer markets. “[This] confirms the success of our various marketing and promotional efforts. We look forward to the prospect of continued growth and expansion throughout the coming year,” added Harebottle.

The company has enjoyed revenue increases from the sale of its emerald and beryl rough, with total sales increasing to $40.2 million (£26 million), from U.S. $19.9 million (£12.9 million) in 2010.

Gemfields’ profits after tax stood at $21.4 million (£13 million), compared to $2.6 million (£1.6 million) in 2010. The sheer increase, Gemfields says, is due to record annual production of 33 million carats compared to 17.4 million carats last year.

After its rough emerald auctions held earlier in the summer, Gemfields claims to have garnered record sales of $31.6 million (£20.4 million).

The company has also initiated expansion, exploration and other plans for growth at its Zambian and Madagascan mining areas.
 

 

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