Gems provider Gemfields has reported “record-breaking” public sale revenues and an “all-time excessive” money place for the six months ended June 30, ensuing within the firm declaring an interim dividend of $15-million.

Gemfields reported revenues of $193.2-million for the interim interval, up from $97.2-million recorded for the six months ended June 30, 2021, whereas earnings earlier than curiosity, taxes, depreciation and amortisation elevated by $43.5-million year-on-year to $104.8-million.

The group’s web revenue after tax of $56.7-million and free money move earlier than working capital modifications of $86.5-million mirrored the excessive revenues.

Gemfields reported a web money place of $81.8-million on the finish of the six-month interval underneath overview, which was up from $63-million within the prior comparable interval. The group additionally held a gross money steadiness of $111.5-million as at June 30, up from $97.2-million within the prior comparable interval.

“Our hard-working groups, aided by buoyant market circumstances, have pulled a really well-groomed bunny out of the hat. Gemfields’ shareholders waited some 17 years for his or her first dividend and, with that milestone having been introduced however six months in the past, we . . . declare a non-routine interim dividend of $15-million,” Gemfields CEO Sean Gilbertson mentioned.

“Gemfields’ distinctive mannequin sees our public sale revenues repatriated in full to Mozambique and Zambia and we’re very happy to see record-breaking sums of $96-million and $86-million, respectively, flowing again to the international locations of origin.”

Gemfields owns a 75% curiosity within the Kagem emerald mine, in Zambia, and a 75% curiosity within the Montepuez ruby mine, in Mozambique. The governments of the 2 international locations maintain the steadiness of shares in every of the mines.

Gemfields can be the operator of each mines.

Trying forward, Gemfields chairperson Martin Tolcher mentioned the present buoyant colored gemstone market, alongside the encouraging manufacturing outcomes on the group’s Kagem and Montepuez operations, meant that the board remained optimistic for the second half of the yr.

“Whereas it can’t be anticipated that the great revenues achieved within the first half of the yr can be repeated within the second half, the corporate stays optimistic that will probably be able to proceed to return funds to shareholders on a constant and sustainable foundation,” he mentioned.

Tolcher preached warning, nonetheless, noting that, even with a sturdy monetary place, the present international financial local weather was one in every of rising costs and provide chain constraints, moreover different elements.

“Consequently, the influence of those issues on the group’s value base can’t be underestimated, with gas prices specifically seeing steep will increase all around the world.

“The present challenges being confronted at an operational stage imply that Gemfields should stay attentive because it navigates the rest of the yr to keep up our monetary resilience and put together for the long run,” he mentioned.

Kagem continued to yield a formidable manufacturing run of premium emeralds. Manufacturing on this class for the interval amounted to 109 600 ct, in contrast with 73 200 ct within the prior comparable interval. General manufacturing for the interval amounted to 19.2-million carats, up from 10.3-million carats for the earlier comparable interval.

At Montepuez, manufacturing throughout the interval within the premium ruby class went up from 21 700 ct within the first half of 2021 to 38 900 ct within the interval underneath overview. Whole gem manufacturing, nonetheless, was 1.6-million carats – decrease than the two.1-million carats of the prior comparable interval.

“Unlawful mining continues to be a problem throughout the licence space, with an elevated variety of juveniles being pushed into the exercise by the unlawful ruby commerce syndicates working within the area, as police start to convict and imprison adults apprehended whereas finishing up such actions,” Tolcher famous.

He added that the Montepuez mine operator continued to actively monitor the insurgency scenario within the Cabo Delgado province, as latest assaults have been getting significantly nearer to the operations than in prior years.

“[Montepuez] has noticed an extra improve in displaced individuals arriving within the district with a consequent rise in unlawful mining actions throughout the licence space,” he famous.

“General, income streams recommend that there are grounds for continued positivity throughout the Gemfields group. The technique stays focussed on consolidating our place as a . . . provider of responsibly sourced African valuable colored gems.”