Gemfields has issued its trading statement for the six months ended 30 June 2026, reporting expected revenues of USD 102.8 million and a net loss after tax of USD 73.5 million, primarily impacted by a USD 125.2 million non-cash impairment charge at Montepuez Ruby Mining (MRM).
Quick Summary
- Gemfields expects a net loss after tax of USD 73.5 million for the six months ended 30 June 2026.
- MRM generated revenues of USD 76.1 million, while Kagem generated USD 26.7 million.
- Total auction revenues for the period were USD 102.8 million.
- A USD 125.2 million non-cash impairment charge was recognised in respect of MRM.
- MRM experienced lower-than-expected premium ruby recoveries during H1 2026.
- Kagem delivered solid operational performance and good premium emerald recoveries.
- Gemfields expects loss per share of USDc 4.3 for H1 2026.
- The company expects headline earnings per share of USDc 0.6.
- Gemfields plans to release its interim financial results on 30 September 2026.
- A shareholder and analyst webcast is scheduled for 30 September 2026.
Gemfields Advises Shareholders on Expected Interim Results
In accordance with paragraph 6.26 of the JSE Listings Requirements, Gemfields shareholders are advised that the Company is reasonably certain of its expected financial interim results for the six months ended 30 June 2026.
David Lovett Comments on H1 2026 Performance
“Further to our operational update for the six months to 30 June 2026, published on 30 July, we are pleased to provide this trading statement ahead of the release of our Interim Results.
Challenges from Lower Premium Ruby Recoveries
The first half of 2026 was a challenging period for Gemfields, driven by lower-than-expected premium ruby recoveries at MRM, which had a significant impact on the Group’s financial performance. Management’s primary focus has been to understand the causes of these lower recoveries and implement measures to improve grade performance, mine planning and operational reliability.
Early Signs of Improvement at MRM
While further evidence is required before drawing firm conclusions, we are encouraged by the early signs emerging from these initiatives. PP2 has now demonstrated its ability to achieve, and on occasion exceed, design throughput levels, although final commissioning and optimisation activities are still underway. Additionally recent ruby recoveries have shown early signs of improvement. Kagem, meanwhile, delivered solid operational performance and good premium emerald recoveries during the period, albeit against a backdrop of elevated operating costs.
Gemfields’ Priorities for the Remainder of 2026
Our priority for the remainder of 2026 is to demonstrate that the recent improvements at MRM can be sustained, while maintaining financial discipline and flexibility across the Group.”
Expected Revenues and Net Profit
Gemfields’ two key operating assets, Montepuez Ruby Mining (“MRM”) and Kagem Mining (“Kagem”), generated revenues of USD 76.1 million and USD 26.7 million respectively in the six months to 30 June 2026 (2025 H1: MRM – USD 38.9 million; Kagem – USD 21.1 million). Total auction revenues for the period were USD 102.8 million. Auction revenues were significantly higher than the prior period, reflecting the deferral of a mixed-quality ruby auction from December 2025 to February 2026, which reduces the comparability of the respective periods.
Expected Net Loss After Tax
Gemfields is reasonably certain that its net loss after tax1 will be USD 73.5 million for the six months ended 30 June 2026 (2025 H1: net loss after tax of USD 20.5 million). In ZAR terms, the net loss after tax is expected to be ZAR 1,205.8 million (2025 H1: net loss after tax ZAR 363.2 million).
MRM Impairment Charge
The expected net loss after tax was driven primarily by a non-cash impairment charge of USD 125.2 million recognised in respect of MRM. In addition, the FY2025 impairment has been restated from USD 35.0 million to USD 65.0 million following the identification of a USD 30.0 million adjustment. Further details of the restatement will be provided in the interim financial statements.
Conservative Forecasting of Grade Recoveries
The impairment reflects the more conservative approach to forecasting grade recoveries taken in the period, particularly for premium product, following lower-than-expected recoveries during the period. While uncertainty remains, recent operational performance indicates that premium-grade recoveries are beginning to improve following actions taken by management. The Group will continue to monitor grade recoveries closely as additional production data becomes available.
Expected Loss Per Share and Headline Loss Per Share
Loss per share2 is expected to be USDc 4.3 for the first six months of the year (2025 H1: loss per share – USDc 1.7). In ZAR terms, the loss per share is expected to be ZARc 70.55, representing an increase in the loss of ZARc 40.43 per share compared with the loss per share of ZARc 30.12 in 2025 H1.
Headline earnings per share2 is expected to be USDc 0.6 (2025 H1: Headline loss per share – USDc 1.5). In ZAR terms, headline earnings per share is expected to be ZARc 9.84, representing an improvement of ZARc 36.44 per share from the headline loss of ZARc 26.60 reported in 2025 H1.
Adjusted headline earnings per share2, is expected to be USDc 0.6 (2025 H1: loss per share USDc 1.5). In ZAR terms, adjusted headline earnings per share is expected to be ZARc 9.84, representing an improvement of ZARc 36.44 per share from the adjusted headline loss of ZARc 26.60 reported in 2025 H1.
Weighted Average Shares in Issue
The Company’s weighted average shares in issue for the six months ended 30 June 2026 was 1,724,230,526 (weighted average for 2025 H1: 1,224,967,113).
Financial Information and Auditor Review
The financial information upon which this trading statement is based has not been reviewed or reported on by the Company’s auditors and is the responsibility of the Company’s directors.
Notice of Interim Financial Results for the Six Months Ended 30 June 2026
The Company’s financial results for the six months ended 30 June 2026 are now expected to be released on SENS, RNS and the Company’s website at 07:00am (UK) / 08:00am (South Africa) on Wednesday, 30 September 2026.
1. Net profit/loss after tax is reported on a parent only basis for the current period
2. Per share metrics based on weighted average number of shares over the period and earnings are based on parent-only figures (i.e. exclusive of the minority interest).
Shareholder and Analyst Webcast
There will be a shareholder and analyst webcast on Wednesday, 30 September 2026 at 09:00 am (UK) / 10:00 am (South Africa). David Lovett (Interim CEO, CFO) and Becki Tate (Head of Finance) will present the Company’s 2026 interim results.
Question and Answer Session
The Company will host a question and answer session following the presentation. Should you wish to ask a question, please either email your questions in advance to ir@gemfields.com, or use the ‘Ask a question’ link on the webcast page during the event.
FAQs
What net loss after tax does Gemfields expect for H1 2026?
Gemfields expects a net loss after tax of USD 73.5 million for the six months ended 30 June 2026.
What were Gemfields’ revenues from MRM and Kagem?
MRM generated revenues of USD 76.1 million, while Kagem generated revenues of USD 26.7 million during the six months ended 30 June 2026.
What were Gemfields’ total auction revenues?
Total auction revenues for the period were USD 102.8 million.
What caused Gemfields’ expected net loss?
The expected net loss was driven primarily by a USD 125.2 million non-cash impairment charge recognised in respect of MRM, alongside lower-than-expected premium ruby recoveries.
What happened to the FY2025 impairment figure?
The FY2025 impairment has been restated from USD 35.0 million to USD 65.0 million following the identification of a USD 30.0 million adjustment.
How did Kagem perform during H1 2026?
Kagem delivered solid operational performance and good premium emerald recoveries during the period, although operating costs remained elevated.
When will Gemfields release its interim financial results?
Gemfields expects to release its financial results for the six months ended 30 June 2026 on Wednesday, 30 September 2026, at 07:00am UK time / 08:00am South Africa time.
When is the Gemfields shareholder and analyst webcast?
The shareholder and analyst webcast is scheduled for Wednesday, 30 September 2026 at 09:00 am UK time / 10:00 am South Africa time.
What is Gemfields’ expected loss per share for H1 2026?
Loss per share is expected to be USDc 4.3 for the first six months of 2026.
What is Gemfields’ expected headline earnings per share?
Headline earnings per share is expected to be USDc 0.6 for H1 2026
Source: SVAR Media Network
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