Gemfields has reported a net loss after tax of US$73.5 million for the first half of 2026, driven by a non-cash write-down at its flagship ruby mine in Mozambique.
According to the miner’s interim report for the six months to 30 June, the sharp downturn from a US$20.5 million loss in the same period last year stems primarily from a US$125.2 million impairment charge at its Montepuez Ruby Mining (MRM) operation. The accounting charge follows a lower-than-expected recovery of premium-grade rubies, exacerbated by heavy seasonal rainfall that limited access to high-grade mining zones.
Despite operational setbacks at Montepuez, group revenues climbed to US$106 million from US$64.2 million year-on-year. Total auction revenues reached US$102.8 million, bolstered by the deferral of a December 2025 ruby sale into February 2026, as well as solid demand at its Kagem emerald mine in Zambia, which generated US$26.7 million.
Early signs of operational recovery have emerged, with MRM’s second processing plant (PP2) now achieving target processing rates. Interim chief executive David Lovett described the shortage of premium rubies as the group's "most significant operational and financial challenge," adding that while recent improvements are encouraging, establishing long-term, sustainable profitability will require consistent execution over time. (Photo courtesy: Gemfields)
09-11-2026
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