Guernsey's Gemfields H1 revenue rises on delayed auction, loss widens on ruby mining impairment

Gemfields

30/09/2026 07:10

Overview
Guernsey gemstone miner's H1 revenue rose yr/yr, aided by delayed ruby auction inclusion
Company posted net loss, driven by $125 mln non-cash impairment at Montepuez Ruby Mining
Adjusted headline EPS turned positive after loss a year earlier

Outlook
Company says it is too early to determine if recent ruby recovery improvements are sustainable
Gemfields' principal focus remains on improving and validating operational performance at MRM
Company says a return to sustainable profitability will require consistent execution over time

Result Drivers
RUBY RECOVERY SHORTFALL - Co said continued shortage of premium ruby recoveries at Montepuez Ruby Mining was its most significant operational and financial challenge
COST PRESSURES - Higher diesel costs and a stronger Zambian kwacha weighed on profitability at Kagem Mining
AUCTION TIMING - Inclusion of revenues from delayed mixed-quality ruby auction boosted reported results for the period

Company press release: ID:nRSd8503Wa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
H1 Revenue
 
$106 mln
 
H1 Net Loss
 
$98.54 mln
 
H1 EBIT
 
-$100.67 mln
 
H1 EBITDA
 
$40.68 mln
 

Analyst Coverage
The one available analyst rating on the shares is "strong buy"
The average consensus recommendation for the non-gold precious metals & minerals peer group is "buy."
Wall Street's median 12-month price target for Gemfields Group Ltd is GBp7.50, about 130.8% above its September 29 closing price of GBp3.25
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)