Coloured gemstone miner Gemfields has reported a 9% drop in revenue for the six months ending Dec 31, 2015 (first half of the financial year) and a major 65% fall in profits, while releasing its Interim Report and Financial Statements for the period yesterday.

The Company reported a revenue of US$94.0 million (2014: US$103.4 million), a 42% drop in EBITDA to US$35.6 million (2014: US$61.7 million) and net profit of US$8.2 million (2014: US$23.2 million).

The statement attributed the drop to “a more equally planned auction mix between the first and second halves of the 2016 financial year when compared to the 2015 financial year wherein a significant part of the revenue (and margin) was achieved in the first half”.

As reported earlier, the Company carried out three auctions during the period. These included one rough emerald and beryl auction of higher quality goods and one of lower quality emerald and beryl (similar to the comparative prior period), and a rough ruby and corundum auction that offered higher and medium quality rough ruby and corundum, compared to a higher quality rough ruby auction held in the comparative prior period.

Among the other highlights of the period reported by the miner were:

• Production of 15.7 million carats of emerald and beryl romits 75% owned Kagem mine (2014: 12.1 million carats) with an average grade of 254 carats per tonne (2014: 202 carats per tonne);
• Production of 2.1 million carats of ruby and corundum from its Montezpuez mine (2014: 6.3 million carats) with an average grade of 15 carats per tonne (2014: 37 carats per tonne). The lower grade but significantly higher value alluvial ore resources mined in this period delivered a 341% increase in overall volume of higher quality rubies recovered. Production is expected to shift to areas of significantly higher grade, but overall lower value material, in the coming months.
• Wholly owned Fabergé Ltd saw the value of realised sales during the period increase by 70% when compared with the same period in 2014. Losses before interest, tax, depreciation and amortisation reduced by 21%.

The Company noted that the coloured gemstone market continued to expand in the second half of calendar year 2015 and retained its production forecast of 25 to 30 million carats for rough emerald and beryl, and 8 million carats of ruby and corundum for the 2016 financial year.

Gemfields also said it looks forward to completion of the acquisition of a controlling interest in the Coscuez Emerald Mine in Boyacá department, Colombia, and then proceeding with its plan for exploration and development of the project during the remaining half of the financial year.

Graham Mascall, Chairman, Gemfields said, “We remain confident in our marketing strategies, their ability to support continued growth in demand and of the significant opportunity that continues to exist within the coloured gemstone market.”