A strong first-half performance has been reported by Gemfields (GEM), with revenues rising by 137 per cent to $65.7m (£39.3m). The upsurge was primarily due to the timing of auctions, but investors can take heart from a marked increase in average selling prices.
In February, Gemfields reported record sales of $36.5m from its latest auction of high quality emeralds in Zambia, while the average selling price hit new heights at $59.31 per carat. That’s just as well given that cash costs have also been on the rise, while Gemfields has also incurred development costs relating to its luxury jewellery brand Fabergé, and its Montepuez ruby deposit in Mozambique. Gemfields has two more auctions scheduled before the close of its financial year on June 30, but the real interest going forward is linked to the first auction from the highly promising Montepuez deposit.
