Gemfields Sees Opportunity In Lower Priced Demand

Market Analysis
08/10/2015 23:06

Gemfields financial year 2015 saw revenue growth of 7% to $171 million, and saw EBITDA advance 8.6% to $64.4 million. Profit after tax fell by 25% to $12.3 million. The custodian of the gemstone industry strengthened its position on both sides of the supply and demand curve through a range of initiatives to lift the profile of the gemstone market, which includes emeralds and rubies. On the supply side, production increased 49% at its 75% owned Kagem mine, which produces emeralds. Production at the company’s 75% owned Montepuez ruby mine rose by 29% to 8.4 million carats of ruby and corundum.

Moneyweb writes that, "It’s the work on the demand side that really sets Gemfields apart from its competitors and other mining companies." CEO Ian Harebottle said that, “Gemfields is the only company taking a leadership role [in this regard]. We the have potential to ramp up production, but we prefer to do so slowly and steadily, and in conjunction with the needs of our sightholders." Gemstones on a per carat basis cost less than similar sized diamonds. “We see an incredible opportunity – to build demand for better priced or lower priced demand. In the current environment, consumers might go for something slightly lower on a quality scale, so we think we can supply this and help our downstream retailers boost revenues,” says Harebottle.