Precious stones miner Gemfields estimates that it will transform its financial status for the six-month period to 30 June 2018 from a state of net loss to net profit.
The company outlines its expectation to announced a net profit after tax of US$16 million for the period, compared to a net loss after tax of US$81 million for the comparative period of 6 months to 30 June 2017.
Earnings and headline earnings per share are expected to be US$c 1.0 for the period compared to loss and headline loss per share of US$c 10.6 for the comparative period.
Gemfields’ two key operating assets, Kagem emerald mine and Montepuez ruby mine, generated revenues of US$20.3 million and US$71.8 million respectively during the period and Fabergé recorded revenues of US$7 million.
During the period the company sold approximately 60% of its shares in Jupiter Mines as part of Jupiter’s relisting on the ASX as well as participating in another Jupiter buy-back.
Gemfields realised profits of USD 11.7 million from these two transactions. Gemfields’ remaining stake in Jupiter resulted in an unrealised fair value gain of US$4 million for the period.
The financial information upon which this trading statement is based is under review by Gemfields’ auditors.
The company’s financial results for the period ending 30 June 2018 are expected to be released on 28 September 2018.